Research On The Impact Of Private Equity Investment On The Underpricing Rate Of GEM IPO

After more than nine years of development,more than 700 enterprises have been listed on gem,which plays an increasingly important role in China's capital market.Due to the high underpricing rate in chinext market and more and more private equity investment funds are invested in chinext IPO market,it has become a hot topic to study the underpricing rate of chinext IPO from the perspective of private equity investment.This paper firstly sorts out the relevant theories of IPO underpricing and makes a statistical analysis of the underpricing of gem.Data show that the degree of underpricing in chinext market is relatively high,which is caused by both primary market and secondary market.The possible influencing factors in the primary market include China's new share pricing system and listed companies' own operating status and future development prospects.The possible influencing factors in the secondary market include the investor's investment sentiment and the market environment.From the above factors,we can feel that private equity investment can indirectly affect the IPO underpricing rate of gem listed companies through influencing the above factors.Second,the development of private equity investment funds of our country's present situation and the investment situation of the gem in China made a simple introduction,followed by the analysis of privateequity investment to our country the influence of the gem IPO underpricing rate mechanism,mainly includes two aspects: on the one hand,the supervision of private equity investment authentication mechanism,raising new shares listed on the first day of the closing price.On the other hand,the reputation mechanism of private equity investment reduces the IPO price.In short,the IPO price of enterprises with private equity investment background is low,and the closing price of new shares on the first day of listing is high,so the IPO underpricing rate of such enterprises is often high.After related theory analysis,this paper takes the gem listed companies as samples,with the data of 2009-2017 as the source,using software and STATA12.0 SPSS22.0 for processing,with the initial underpricing rate and through market adjustment is underpricing rate is explained variable,step in if there is a private equity investment institutions,and private equity investment institutions as the explained variable,holding time on the first day,issuance,issued in the p/e ratio,current ratio,asset-liability ratio,return on net assets,total assets turnover ratio as control variables,Through descriptive statistical analysis,correlation analysis,regression analysis and robustness analysis,the paper verifies the impact of private equity investment on IPO underpricing rate of chinext.The conclusion shows that whether and when private equityinvestment institutions hold shares has a significant impact on IPO underpricing rate of gem listed companies.The IPO underpricing rate of enterprises with private equity investment background is much higher than that of enterprises without private equity investment background,and the longer the private equity investment fund holds shares,the higher the IPO underpricing rate of enterprises.Finally combining the research conclusion,the paper puts forward the following Suggestions:(1)the investors to strengthen the risk awareness,rational decisions(2)the financing enterprise introduces private equity,moderation re-choose investment cooperation(3)private equity investment institutions to improve the ability of enterprise to provide value-added services for financing(4)the government to improve the distribution system of our country and strengthen the supervision of the fluctuation in stock debut.