Analysis On The IPO Performance Of University-based Listed Companies

Strengthening the combination of "production, study and research" and promotingthe combination of knowledge, technology and capital markets, which has become animportant support to realize the modernization of our economy. In addition toundertake the function of traditional education and research, The Universities havegradually become the important platform of science innovation and technologicalprogress. The universities and its researchers have entered the capital markets andpromoted the industrialization of scientific achievements by kinds of approach,therefore, many companies which are depending on the universities or closely relatedthe universities have been found. Because of the background of universities, thesecompanies have the advantage to get many supports of tangible and intangibleresources from government, academic partners and risk investment, in this way theyare expected to have a better performance, so they can successfully gain the attentionand popularity from investors. But do university-based listed companies really have abetter IPO performance as all the investors wish?This paper firstly introduced the historical background, present situation andcharacteristics of Chinese university-based listed companies, and then made a reviewabout the research at home and abroad. The content of the review includes: IPOunder-pricing, IPO long-run underperformance and related research about university-based listed companies, and also made a summary and comment on the review.Thereafter, the paper adopted comparative study method and empirical study method toanalysis the difference between university-based listed companies andnon-university-based listed companies, according to the empirical test, the paper finallyarrival at five main conclusions:(1) In terms of innovation factors, for example talentand technology, university-based listed companies showed a significant universitybackground advantage, and these firms generally had a much higher IPO price, what’smore, the higher shareholding ratio of universities, the higher IPO price;(2) Thelong-run rate of return of university-based listed companies didn’t meet the expectationsof investors, the shareholding ratio of universities or scientific research institutes haveno impact on its IPO under pricing and IPO long-run performance.(3) University-basedlisted companies didn’t have a better IPO Performance, the background of universityirrelevant to the IPO performance.(4) The innovation factors of university-based listed companies include the number of patents, the ratio of R&D spending and theeducation background of senior executives didn’t have a significant positive impact onits IPO performance.(5) The injection of venture capital didn’t improve the IPOlong-run performance too, even had a negative effect.In the end, based on the results of regression analysis, the paper gave some usefulpolicy recommendations on how to improve the IPO pricing efficiency, how to promotethose high-quality listed companies to fully play their competitive advantages and howto push the sustainable and healthy development of Chinese capital market.