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The Impact of Innovation on IPO Underpricing in the STAR Market

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Recent Advancements in Computational Finance and Business Analytics (CFBA 2023)

Part of the book series: Learning and Analytics in Intelligent Systems ((LAIS,volume 32))

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IPO underpricing refers to the phenomenon of excess returns at the beginning of an IPO. This paper selects 505 companies listed on the STAR Market from 2019 to 2022 as samples, and examines the impact of technological innovation on IPO underpricing from the perspectives of R&D investment and R&D output. The results show that R&D investment, which is characterized by information asymmetry, leads to uncertainty in the market's valuation of companies, which will intensify IPO underpricing, but the signal effect of patents will significantly reduce the degree of IPO underpricing. The study suggests that companies should pay more attention to patent applications while increasing R&D investment, and focus on converting the results of R&D investment into patents in order to obtain more commercial value.

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Correspondence to Shuijing Hu .

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Hu, S. (2023). The Impact of Innovation on IPO Underpricing in the STAR Market. In: Gupta, R., Bartolucci, F., Katsikis, V.N., Patnaik, S. (eds) Recent Advancements in Computational Finance and Business Analytics. CFBA 2023. Learning and Analytics in Intelligent Systems, vol 32. Springer, Cham.

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