IPO underpricing as well as speculation on the first day of trading is a worldwide\nphenomenon. In order to curb IPO speculation risks, Shenzhen Stock Exchange makes an\nattempt to directly restrain price volatility and turnover rate through the Temporary Trading\nHalt Mechanism. This paper employs Rubin Causal Model and Genetic Matching method to\nevaluate and analyze real effects of the Mechanism. Empirical results show that, although it\nlowers the first-day turnover rate, the mechanism does push up first-day returns and first-day\nPrice-to-Earning ratio. In fact, it keeps the closing price stay in a relatively high level, but is\nhelpless for curbing risks.
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