Research About The Effect Of Entrepreneur’s Ability On The GEM IPO Pricing Efficiency Of Biopharmaceutical Industry

In the process of IPO,entrepreneurs,the important leaders and key decision-makers of enterprises,run and manage company by their own human capital capacity,social relations and other aspects of ability.They have great influence on the pricing of new shares.Chinese GEM market is improving gradually,which has now become an important platform for financing of Chinese growth of small and medium-sized high-tech enterprises.The managers’ market tends to become market-oriented,entrepreneurial ability play an more and more important role in the development of small and medium enterprises.In the development of company,they learn and create continuously and combine the new environment with new opportunities by their own extraordinary talent and rich experience to lead the company to success.By summarizing the domestic and foreign scholars’ research on entrepreneur ability and IPO pricing,we find that there are many works related to the entrepreneur’s ability and IPO pricing efficiency at home and abroad,but little attention is paid to the impact of entrepreneur’s ability on IPO pricing efficiency.Hence,in this article we study this issue by selecting 85 biomedical industry companies as a sample,hoping to make a certain explanation to this problem.In this paper,we divide into five parts,the background and significance of the article are introduced in the first part.At the same time,we comb the relevant literature at home and abroad and evaluates briefly.The second part analyzes the theory of entrepreneur’s ability and the theory of IPO pricing efficiency and explains how entrepreneurs’ capability affects IPO pricing.The third part mainly elaborates the measurement of the entrepreneur’s ability,constructs the relevant index system,scores the entrepreneur’s ability and carries on the comprehensive rankings for the 85 company’s entrepreneurs which lays the foundation for the empirical analysis of the fourth chapter.The fourth part is the empirical part of this paper,we analyse the relationship between entrepreneurial capacity and the issue price of new shares by using the multiple regression model.The fifth part summarizes the empirical conclusions,and gives suggestions for the improvement of entrepreneurs’ ability and the investment.In recent years,the role of entrepreneurial ability in China is gradually strengthened.The empirical results show that the entrepreneurial ability has a positive impact on the issue price.