A Study On The Influence To IPO Underpricing Of Venture Capital's-Empirical Studies Based On GEM

During the process of the initial public offering(IPO)of Enterprises,there will often be a vision that the first day closing price is much higher than the stock issue price,this phenomenon is called underpricing.The phenomenon of IPO underpricing is widespread in all countries.The cause of this phenomenon has always been the hotspot of financial research.China's GEM companies on the first day of the IPO also showed high underpricing,and venture capital is to use IPO to obtain high return on venture capital,investment companies in the IPO process plays an important role.The study of the impact and reasons of venture capital institutions on the IPO underpricing has some guiding significance for the development of venture capital and the GEM market.In this paper,570 companies listed on the GEM from 2009 to 2016 were used as research samples to study the influencing factors of IPO underpricing and the impact of venture capital institutions on the IPO underpricing at different stages of the GEM.This paper chooses the relevant variables that reflect the IPO pricing stage,the issuance stage and the first day of the secondary market.The descriptive statistical analysis is used to determine whether there is significant difference between the venture investment institutions and the establishment of multiple regression models.The impact of underpricing is analyzed by regression analysis.This paper finds that:(1)There is no significant difference between the IPO underpricing rate of the companies participating in the venture capital institutions.Western mature market derived " Certification",,Supervision","Adverse selection",M Grandstanding" theories are not suitable for China's overall market GEM.(2)The impact of venture capital institutions on IPO underpricing at different stages of the GEM is different.Before June 13,2014,venture capital institutions participated in raising the IPO underpricing rate of listed companies.After June 13,2014,venture capital institutions Participation in the GEM listed companies IPO underpricing rate has no effect.(3)Investors sought to enhance the IPO price of China's IPO.Through the analysis of the study,this paper offers advises on the venture capital institutions,GEM,and provide reference to China's venture capital industry and the development of the GEM,promote the healthy development of China's capital market.