Effects Of Underwriter And Venture Capital In IPO Market

With the improvement of China's capital market deepening as well as the sustained and rapid development of the national economy, China's equity market has developed rapidly, and enterprise financing platform has continued to be improved. Consequence follows this, the IPO's number of enterprises is rising by more and more enterprises come into public's horizon. The outside financing difficulty of small and medium-sized enterprises (SME) which was begun with the reform and opening-up policy, however, has not tackled. After the Securities Law of the People's Republic of China and the Company Law of the People's Republic of China was revised, this paper takes the enterprises in China's SME board listed from 2006 to 2009 as research samples. Unlike existing studies neglected the Venture Capital(VC)--to play an important role in per-IPO--factors, this paper re-analysis of the underwriting market structure on non-full price competition perspective, respectively put the risk investment per-IPO, IPO underwriters and related factors per-IPO and post-IPO for research.In chapter one, this paper comparatively analyzes the research status of domestic and abroad markets with underwriters, venture capital and IPO market, discusses the abroad and domestic theoretical conclusions which have already widely accepted and controversial problems, points out the technical route, research method and innovations in this paper.In chapter two, this paper describes roles of underwriters and venture capital as well as the situation of China. Firstly, it discusses the role of underwriters and market for starting discussion, then it analyzes the effect of venture capital in enterprises, at last, it describes the status quo of underwriters and venture capital in China.In chapter three, this paper researches the IPO market with venture capital. This chapter theoretically analyzes the underpricing problem which is important for enterprises in the IPO market. At first, with further considering the actual market situation in non-perfectly competitive market, it researches the IPO market and gets the conclusion that non-price factors can also explain the IPO underpricing to a certain extent.In chapter four, this paper analyzes the function of underwriters and venture capital in the IPOs of SME board. Based on the 276 corporations between 2006 and 2009 successful IPOs on the small and medium-sized board, this chapter verified three parts:the venture capital enhance corporate value in pre-IPO; the underwriter's reputation in IPO market plays a role at some extent; the different preferences in IPO underpricing and the different performance of exit period of star-analyst which is either VC-backed or not.In chapter five, this paper points out the existing problems and improved suggestions in China's SME board.In the last chapter, this paper goes to have a summary and prospects, which points out the lack of research and development needs.