The Research Of The Impact Of Venture Capital Participation On IPO Underpricing Of Small And Medium-Sized Enterprises

Initial Public Offerings(IPO)is one of the important exit channels for venture capital investment.Venture capital is involved in enterprise management,providing value-added services and withdrawing from the realization of return when the enterprise matures.Chinese venture capital started late.The absence of venture capital exit mechanism is one of the biggest risk factors in China's venture capital industry.The introduction of the GEM provided the necessary institutional environment for the domestic venture capital to achieve "local investment,local exit".Financing difficulty is among Chinese small and medium-sized enterprise(SME).The Opening of Chinese GEM market,not only provided a financing platform for high-tech innovative SME,but also created the conditions for the development of Chinese venture capital.The paper chooses the IPO enterprises listed between January 2014 to June 2015 in GEM market as research objects.Based on Information Asymmetric theory and Behavioral Finance theory,scholars in and abroad put forward several assumptions of the relationship between venture capital and IPO underpricing.Firstly,On the basis of these assumptions,as far as the actual situation was concerned after the introduction of Chinese new IPO policy in 2014,the paper redefines the IPO underpricing rate on the basis of the original definition.Then taking the average of IPO underpricing rate on the 30 th,60th and 90 th days after the listing adjusted by the GEM index as dependent variable,the paper explores the relationship between the holdings of venture capital institutions and IPO underpricing.The main conclusions of the paper are: In the GEM market,the IPO underpricing of venture capital holdings is significantly lower than that of venture-free enterprises,which supports the hypothesis of certification.In the explanatory variables of venture capital characteristics,the VC-SYD,VCN has passed the significant test and significantly negative,which indicates that venture capital not only brings capital to enterprise,but also conducive to corporate information disclosure to reduce IPO underpriced.And VC-SE has passed the significant test and significantly positive,which indicates many corporate shareholders often keep the directors and supervisors stationed by venture capital nominally and not really involved in business management in fear of losing control of the enterprise.