Can the IPO Price Limit Policy Affect Investor Disposition Effect

After China began to implement the maximum increase limit policy on the first day of IPO, it had a profound impact on investor behavior. This article uses the public information of the IPO market from 2006 to 2012 and 2014 to 2018 to start with the transaction volume and turnover rate, study the impact of policies on the industry, test the effect of investor disposition effects on this basis, and attempt to attribute the impact. The research results show that the policy has a greater impact on high-yield industries. Investors dominated by small-cap stocks have a weaker disposition effect, while investors dominated by large-cap stocks still have irrational disposition effects. Therefore, the increase limit policy can weaken the investor's disposition effect to a certain extent and decline its speculative effect.