The Effect Of Specialized Venture Capital On Gem IPO Underpricing And Operation Performance

IPOunderpricingand the change of operation performance after the IPO bothattracted the attention of many scholars and researchers since the GEM waslaunched. For a long time, the researchers haveput much attention tostudytherelationship between venture capital andIPOunderpricing or the change ofoperation performance after the IPO from reputation perspective. There is noresearch on the impact ofSpecialized Venture Capitalon IPO underpricing and theoperation performance after the IPO.Combined with the special situation on China GEM, we define SpecializedVenture Capitalby the length of subsisting time of venture capital institutions,theaverage investment scaleper industry,the number of investment projects perindustry. Thisthesisfocuses on TOP50Chinese mainland venture capitalinstitutions in2012. TOP50venture capital institutionsare divided intoSpecialized Venture Capital and non-Specialized Venture Capitalby definition.wewant to find the impact of Specialized Venture Capital andnon-SpecializedVenture Capitalon IPO underpricing and operation performanceafter the IPOon China GEM.Thisthesisuses an independent sample test and the cross-sectional regressionanalysis to find the impact of the Specialized Venture Capital,non-SpecializedVenture Capital and other factors on IPO underpricing andoperation performance. Finallywe find: The rates of IPO underpricing ofSpecializedVenture Capital-backed companies aresignificantly higher thanthoseof the non-SpecializedVenture Capital-backed companies; There is norelationshipbetween theshareProportion of Specialized Venture Capitaland theIPO underpricing; TheshareProportion of Specialized Venture Capitalhas apositive impact on operat ion performance; TheshareProportion of SpecializedVenture Capital hasasignificant the impact on operating performance after theIPO; There is no relationship between the number of Specialized VentureCapitalinstitutions and operation performance.Thisthesisextends the study scope of the relationship between thespecialization of financial intermediaries and security market including IPOunderpricing and the change of operation performance after IPO. It also providesan important reference standards for measuringthe Specialized Venture Capital.