Venture Capital Venture Firms Ipo Suppression Empirical Studies Of Price Effects

IPO underpricing refers to when the stock price is low in the distribution market, leads to listing on the first day closing price is higher than the issue price, to companis a short-term excess returns. View from the research of home and overseas , IPO underpricing phenomenon is common in all countries, but a different degree of underpricing, the degree of mature stock market underpricing is lower than the emerging stock markets.Recent years ,in listed companies, there is a type of business become into the focus, because the involvement of venture capital organizations companyed in overseas. Compare with the non-venture-backed companies, when the venture-backed companies invovled in IPO, the involvers increases four categories: issuers, underwriters, investors and venture capital. Venture Capital added into the relationship between the parties involved in making more complicated—from the perspective of the issuer is a venture capital organization of its shareholders (before the IPO the company has a greater influence), in the viewof consignee the venture capital investors should be the professional venture capital organizations ,moreover,financial institutions and institutional investors are play a significant role. Under asymmetric incompanyation theory, underpricing degree and extent of incompanyation asymmetry is related to venture capital companies, since the real value of the issuing company, its ability to issue shares in the business process of reducing incompanyation asymmetry and thus reduce the degree of underpricing is a worthy problem to study, this can be more venture-backed companies and non-venture-backed companies during the IPO underpricing to measure the degree of difference between venture capital companies listing in the role.This is a feature of this innovation lies.In this paper, January 1, 2007 to December 31, 2009 listed on the Shenzhen Stock Exchange, a new small board and GEM 83 venture-backed companies, and with matching the 178 new listings during the period of non-venture capital support enterprises studied through comparative analysis of differences, correlation analysis and multiple regression model constructed an empirical study. The conclusion show that venture capital companies on the IPO underpricing risks are correlated, affecting venture IPO underpricing is the main factor in venture capital to support financial management, including the venture capital firm stake, venture capital enterprises on the overseas the proportion of venture capital firms and venture capital investment is whether phased joint investment. Finally, in the capital market system, the pricing system,and the management tools, such as the behavior of investors.Given Chinese venture capital industry the advises that in the future,how the venture capital industry develop and how to build the corresponding policy recommendations.