The Impact Of Venture Capital On The Use Of IPO Raised Funds

Venture capital of China sprouted in the 1990s and it has gradually grown into a force to be reckoned with in China's capital market.The development of venture capital has effectively increased the proportion of direct financing in the capital market,stimulating the development vitality of entrepreneurial enterprises and small and medium-sized enterprises.At the same time,venture capital,as a professional investor,can exert its professional skills and industry experience to supervise the invested companies and also provide value-added services.As the role of venture capital in promoting economic development and corporate growth has become increasingly prominent,the academic research on venture capital has gradually enriched and improved.At present,the research on venture capital mainly focuses on the IPO effect,but the research on the role and internal mechanism of venture capital after the company goes public is less.This paper focuses on the current inefficient use of IPO raised funds in the A-share market,and introduces venture capital into the study of the use of IPO raised funds.When a listed company in China declares IPO,it needs to formulate a plan for the use of raised funds and disclose it in reports such as prospectuses.However,some listed companies did not use the raised funds as planned after the IPO,resulting in the actual use of the raised funds deviating from expectations.In recent years,more and more companies are listed on the securities market,and the overall scale of public fundraising is also rising,but the problem of inefficient use of IPO raised funds is becoming more common.This paper takes the companies listed on the A-share market from 2006 to 2015 as the research sample,and takes the use of raised funds at the end of the second year after listing as the research object,mainly obtaining the sample data by means of manual collection.The research results show that listed companies with venture capital support have better use of IPO raised funds,showing higher investment rate of IPO raised funds and lower investment change rate.At the same time,venture capital's characteristics of shareholding,syndicate investment and state-owned will also affect the use of IPO raised funds.For the first time,this paper has achieved the connection between venture capital and the use of IPO raised funds,filling up the gap of current academic research to a certain extent.It will help listed companies to use the raised funds reasonably and effectively,and better play the role of supervision and guidance of venture capital,and provide some reference for improving the relevant systems of China's capital market and improving the efficiency of resource allocation in the capital market.