摘要：AbstractThe oversubscription ratio of IPO prior to listing is an anomaly in countries that employed fixed price mechanism. According to the signaling theory argument, IPOs of good quality attract subscription from investors. An analysis was made to observe whether IPOs with growth opportunity (good quality) account for oversubscription. Using multivariate regression, it is found that there is a significant negative relationship between growth opportunity and oversubscription ratio. A significant negative coefficient of growth opportunity suggests that companies with high growth opportunity tend to have low risks and are not overly subscribed by investors as they provide low initial returns.
