Keywords：IPO
Authors: Ma Guangrong
Author information：Renmin University School of Finance and Economics
Summary:
From the perspective of IPO pricing efficiency, this paper discusses the impact of geographical location and the construction of high-speed railway on economic operation efficiency. The information asymmetry between investors and companies leads to IPO underpricing, and the geographic location of enterprises is an important aspect to reflect the degree of information asymmetry. This paper finds that the IPO discount rate is lower for firms closer to the three central cities, and the location has a greater impact on the IPO discount rate for firms with higher degree of operational uncertainty. The convenience of information communication brought by high-speed rail makes up for the influence of geographical distance on IPO pricing, reduces the distortion of the issue price relative to the real value, and improves the pricing efficiency of the capital market.
