IPO Timing And Post-IPO Technological Innovation Performance Of Innovative Enterprises

Technological innovation is an important method for enterprises to update their products.It can further promote industrial structure adjustment and optimization,thus bringing the overall development of macro economy.But,enterprises need to input a lot of capital to support technological innovation in a relative long period,and they face with great uncertainty.As a result,enterprises are hard to support the technological innovation item through internal financing,and they need to seek for external financing.When the enterprises decide to introduce external financing in their early stage,they can choose IPO or venture capital,and these two different ways will lead to different technological innovation outputs later.This paper tries to study how the technological innovation will influence the way of early financing and IPO timing,and what effects the IPO and venture capital will have on the technological innovation after IPO.By doing a research of bidirectional influences between IPO,venture capital and technological innovation,this paper makes a supplement of existing research and give a reference to enterprises when they make IPO timing decision on technological innovation.First,this paper establishes a two-stages model based on Maksimovic and Pichler's(2001)model to study how enterprises make decision on IPO timing with the goal to maximize company value in a changeable technical environment,so that we can see the effects of technological innovation on the decisions.In accordance with the results of the model,we put forward two hypotheses.The first one is that innovative enterprises tend to postpone IPO when they are in a technology updating faster industry and faced with greater technical risk.The second one is that enterprises tend to postpone IPO when they need more R&D input,because they prefer to seek for venture capital in the early time.Beside,we make further analysis and research on the effects of IPO and venture capital on enterprise's innovation performance after IPO and put forward hypotheses on it.In the empirical part,the data sample includes listed companies on A-share market from 2005 to 2015.First,we establish a Logit regression model to test the hypotheses of IPO timing.It turns out that the industry of company has no significant effect on IPO timing.But when the companies face more R&D input,they tend to postpone IPO.We make an empirical test on how IPO and venture capital influence Post-IPO innovation performance with manufacturing companies,and the results shows that:first,IPO can promote the technological innovation output,and the effect is more significant for asset-light company,because IPO will have a better relief of financing restriction for them compared with those with heavy assets.Second,venture capital participation has positive effect on technological innovation output,and the stock proportion of venture capital has positive effect too.But,the number of venture capital has no significant influence on enterprises' technological innovation output.