Venture Capital,"Hot Issue"Phenomenon And IPO Timing Choice

With the rapid development of domestic venture capital industry and increasingly growing of the multi-level stock market, more and more venture-backed companies conduct IPO in the stock market to raise funds in order to meet the financial needs of their own development, and promote their competitiveness in the market, for obtaining better development. At the same time, venture capital firms hold many listed shares in the Stock Exchange, they get a more substantial return on capital investment. In this case, recent years, the domestic theoretical circles concern venture capital and IPO phenomenon very much, and number of scholars have done some influential study. But now, with venture capital and IPO combined is shortage in the domestic empirical research. With the Shenzhen SME board market develop rapidly, data collection is more convenient. It provides a solid foundation for empirical research.This article reviews the study of market timing and "hot issue" from the domestic to foreign scholars, and put forward theories of related research hypotheses. Then based on the Shenzhen SME board market data, venture-backed companies and no-venture-backed companies are divided into two groups, then using the statistic and empirical analysis to study the IPO timing and "hot issue" of venture-backed companies. The empirical results show that:1,venture-backed companies conducting IPO is not in the best-performing, no-venture-backed companies conduct IPO in the best-performin;2,venture-backed companies and no-venture-backed companies both exist "hot issue" phenomenon, but the venture-backed companies is more significant in the model test. Thanks to empirical test,we understand some phenomenon of venture-backed companies’ IPO in Shenzhen SME board, combined with the characteristics of Shenzhen SME board and related theories, this article presents the some explanation. At the end of the article, it presents the summary, and it also put up some suggestion to investors, venture capital and securities market supervisory authorities respectively, at the some time, according to the defect of this article, it puts forward the suggestion of the follow-up study.