Positive Study Of Vc/pe-backed Influences Upon Ipo Underpricing Degree Of The Chinext's Listed Companies

From the Chinext's preparation to establish, it has been attracted a lot of attention. On October 30,2009, Chinext opened; it not only has enriched the multi-level capital market in China, but also provided another exit channel for VC/PE investment institutions. And it has promoted overall development of the VC/PE industry. With more and more companies listed on the Chinext and the release of the companies'its prospectus, the VC/PE investment institutions behind these companies has gained the largest concern. According to this paper's statistics, it reveals that nearly 75 percent of the Chinext's listed companies are VC/PE-BACKED.Chinext's feast, is not only the feast of the listed companies,but also the feast of VC/PE investment institutions.And according to the statistical data in this paper,the VC/PE-BACKED IPO underpricing degree is higher than the average level of the Chinext by 0.03,and also higher than the NON-VC/PE-BACKED by 0.13.VC/PE investment institutions play the important roles in the IPO.VC/PE investment institutions help the enterprises IPO in the capital market, and enhance the value of the enterprises and themselves. But the issue on whether VC/PE-BACKED is one of the reasons of the high IPO underpricing degree has raised much concern.For the above issue, in this paper, we will take on the empirical research on the IPO underpricing degree according to the listed companies on the Chinext.The sample of this research is the 90 companies listed between October 30.2009 to Jun 30.2010,including 68 listed companies with VC/PE-BACKED; and 22 listed companies without VC/PE-BACKED. Based on the empirical analysis according to the sample data,this paper get the following conclusions:(1) The fators effecting the IPO underpricing degree of the listed companies on the Chinext have five:TURNOVERRATE,PE,PK,NEPSBIPO, PRICINGRATE。(2)VC/PE-BACKED have a certain influence on the IPO underpricing degree of the listed companies on the Chinext,it is notable in 10% significant levels. The VC/PE-BACKED IPO underpricing degree is both higher than the average level of the ChiNext and than the NON-VC/PE-BACKED. VC/PE-BACKED failed to reduce the degree of the IPO underpricing, but increase the IPO underpricing degree.In this paper, we think the demand on the information diffusion of VC/PE investment institutions is one of the reasons. To exit rapidly after IPO,VC/PE investment institutions may tend to speed up the process of the IPO,but not in the right time.And this action may result in the higher IPO underpricing degree.(3)Among the five factors affecting the 68 VC/PE-BACKED companies, TURNOVERRATE is the most significant factor, it has the positive correlation with the VC/PE-BACKED IPO underpricing degree. The high enthusiasm to the Chinext and VC/PE institutions, these may lead to the high VC/PE-BACKED IPO underpricing degree.(4)PK has positive correlation with VC/PE-BACKED IPO underpricing degree. The reason may be VC/PE-BACKED companies is more popular in the market. PE,NEPSBIPO,PRICINGRATE has the negative correlation with VC/PE-BACKED IPO underpricing degree. This may be due to the limited sales period of the VC/PE investment institutions after IPO, there is a period after the limited sales period;the more investment demand of the VC/PE-BACKED listed companies;and the good expectations on the VC/PE-BACKED companies.Finally this paper summarizes research conclusion, and in the light of influencing factors,this paper puts forward some corresponding proposals:(1)The investors shall do the rational value judgment according to the development of enterprises;(2)Develop the VC/PE industry more actively;(3)Guide the VC/PE investment institutions'investment actively. Encourage the VC/PE investment institutions provide the value-added services for the enterprises;(4)The potential listed enterprises should choose the suitable listing timing to IPO, not too fast to IPO.