Research On VC Reputation, Reduction After The IPO And Investment Behavior Of Entrepreneurial Enterprise

The GEM market has boost the economy reform and the adjustment of industrialstructure in China, helping small and medium-sized enterprises, especially for highgrowth enterprises to provide more convenient financing channels, and enrich ourcountry’s multi-level capital market system, play an important role in making theindependent innovation strategy financing platform. At the same time, behind the IPOissuance, financing and exit, there emerged more and more venture investmentorganization in GEM listed companies. Venture investment organization which as providestart-up companies need financial support, strategic decisions and optimize capitalstructure, promote entrepreneurship enterprises standardized operation, is of greatsignificance. However, because of the venture investment institutions can "had very lowcost in exchange for short-term huge gains" objective temptation, after successful IPO inGEM, as long as the lockup period. Along with the extensive development of ventureinvestment industry in recent years, and evil people mixed up their own, there isreputation condition,"gold rush mentality" serious venture investment institutionsinterested in profit-seeking by reducing behavior.The VC market is in a competitive situation, the low degree of monopoly, the VCorganization take reputation as valuable assets. The reputation can reflect the overall VCinstitutions fund size, professional skills to do it or not, whether practitioners experiencerich or poor, as well as the usual business performance advantages and disadvantages, it’sobviously important. Therefore, it’s necessary to explore whether VC institutionsreputation that discretion to engage in entrepreneurial enterprises reduction after the IPO,and whether VC institutions reputation that discretion to engage in follow-up investmentbehavior.First of all, the paper based on the combination of theory and empirical analysismethods, refer to the literature research both at home and abroad, based on "startupinvestment institutions in startups after successful IPO reduction," the status quo, therelationship between the venture investment organization, and analyzes the GEM existingproblems. Conclude the growth enterprise market "three tenors" phenomenon is serious,its market risk is bigger, some Entrepreneurial Enterprises share prices artificially high,lack of good performance support, most of the venture capital organization of lowreputation adherence to the "short-sighted investment", keen on crazy reduction, etc. Secondly, through the characteristics of venture capital institutions and venture capitaloperation process description, the reputation of venture investment mechanism analysis offormation mechanism and principle as well as in the startup after successful IPOreduction may cause further excavation; Select the growth enterprise market within3years all355listed companies as the research sample, from defining variables determinethe research hypothesis, designing, data preprocessing, descriptive statistics analysis,principal component analysis, sample data model is established with regression analysisand other aspects, to explore "venture investment institutions reputation","reduction afterthe IPO" and "entrepreneurial enterprise follow-up investment behavior" relations.Again, corresponding to the OLS analysis results show that:(1) reduction of venturecapital institutions after the IPO is positively related to the "three highs" phenomenon;(2)reduction of venture capital institutions after the IPO is negatively related to the businessenterprise operating performance;(3) venture capital firm IPO reduction and itsreputation are negative correlation;(4) a startup venture capital organization of follow-upinvestment behavior and reputation is positive correlation;(5) a startup venture capitalorganization of follow-up investment behavior and reduction of venture capitalinstitutions negative correlation.Finally, the paper based on the present situation and the empirical analysisconclusion, from the perfect the mechanism of the growth enterprise market and regulatethe behavior of venture investment institutions, innovation is put forward the growthenterprise market supervision mode, speed up the growth enterprise market mechanismreform, improve the growth enterprise market investment situation, improve the system ofventure investment industry standards and measures; In order to truly establish the growthenterprise market as an effective financing channel, the small and medium-sizedenterprises to promote the whole gem market include the establishment of ventureenterprises, as well as the participants of small and medium-sized investors, to achieve"win-win" effect. Research conclusions can provide certain decision reference views andunderstanding, to help the growth enterprise market regulators on the growth enterprisemarket systemic defects take corresponding measures, to improve relevant laws andregulations revision process.