The Effect Of Venture Capital Syndicate On IPO Underpricing Level Empirical Evidence Based On The Domestic Capital Market

Venture Capital has made great contributions to the growth and development of enterprises as a high-tech industry "incubator". As an investment strategy, more and more start-ups of all ages are in favor of joint venture investment. As the most effective channel for the risk investment institution, IPO can obtain the possibility of the realization of the excess profit in the short term. Facing the current situation of choosing syndicate, we can effectively inhibit the opportunism and reduce the problem of the IPO underpricing.The study follows theoretical analysis, empirical, case analysis. There are 430 companies which have venture capital participation from 2008 to 2012 the Shanghai and Shenzhen Stock Exchange listed picked as research subjects, to clarify Whether the joint and joint characteristics of the invested enterprise has an effect on IPO performance. The results showed that the joint venture-backed IPO underpricing companies significantly lower than independent venture-backed companies, which verified the positive role of the venture capital syndicate to suppress opportunism. Because of the weak authentication capability of venture capital institution, the IPO underpricing level of government is relatively high. Furthermore, the writer proposes a joint exploratory difference indicators, the age difference established union member, nature of the industry and organizational form of venture capital between parent sum analysis, the results showed that the larger joint venture differences are, to some extent, increased the difficulty of the joint venture to achieve moral hazard, and thus inhibit earnings management, the lower IPO underpricing is. On the basis of theoretical and empirical research, the Shenzhen D company case analysis followed. From a practical operational level to explain the union member described in the contribution of business investment made, and this mechanism enterprises IPO underpricing cases decreased. Finally, for the development of venture capital syndicate provides policy recommendations aimed at improving the quality of domestic joint venture is not high status, and strive to maximize the positive effect of venture capital.