The Exit Of Venture Capital And The Empirical Analysis Of IPO Withdrawal Performance In China

In recent years, the domestic venture capital industry developed rapidly, amountof investment was increasing year-by-year. In2009before the launch of the GEM,risk investment institutions in China were listed on the Shenzhen SME board, GEM inHongkong and overseas. Since the introduction of the GEM, domestic venture capitalexit opens up a new way, risk investment institutions have turned their attention to theGEM, much more venture capital investment projects withdraw through theGEM,further,exit return rate is considerable.For GEM start time is short, our researchon venture capital exit problem mostly focus on the political suggestions, theempirical study on IPO withdrawal performance is few.Consequently,this papercarried out research on this issue.Firstly this paper reviews the research status and achievements of domestic andforeign scholars about the selection of venture capital exit ways and the factorsaffecting the exit return. Secondly, this paper introduces the connotation, causes andcharacteristics of several main exit ways of the venture capital,then establishs anevaluation index system of venture capital exit performance from the two aspects ofwithdrawl benefit and withdrawl efficiency. Further more,the paper compares the twomain exit ways based on the above evaluation index.Thirdly,combining with theactuality and the barriers to exit of venture capital in China, this paper study on theinfluence of macro and micro factors of Chinese IPO exit return rate by collectingdata and empirical research. I select the annual rate of return as dependentvariable,then select the average price-earnings ratio,the stock cycle as the macrofactors and select working time,management of capital scale,risk investmentcycle,investment scale,investment industry,location of investment institutions,theissue price as the microcosmic influence factors.Then this paper selected projectswith the background of venture capital based on the data of Shenzhen GEM ListingCorporation.And carried out an empirical study on influence factors of venture capitalIPO exit returns through the correlation analysis and regression analysis. According tothe empirical results,risk investment cycle and the scale of investment are negativelyrelated to the annual rate of return,the annual rate of return and the stock issue price issignificantly positive correlation. However,relationship between the annual rate ofreturn and other explanatory variables (the average price-earnings ratio,the stock cycle,working time,management of capital scale,investment industry, location ofinvestment institutions) have no significant correlation.Finally,on the basis of theresults of the empirical study,this paper presents the conclusions and policyrecommendations combining with the development of risk investment industry inChina.