The Impact Of Venture Capital And Its Characteristics On IPO Underpricing

The IPO is the first time the company has issued shares to the public to obtain the funds needed for the company's development.IPO is an important financing method,and it is also an important exit channel for venture capital institutions.Through in-depth research,venture capital institutions use their own advantages to participate in enterprise management,provide a variety of value-added services,and withdraw from the realization when the enterprise matures.The IPO underpricing refers to the fact that the issue price of the company's stock is significantly lower than the closing price of the IPO on the first day of listing,which is reflected in the high yield on the first day of listing.The phenomenon of IPO underpricing is widespread in the issuance of new shares around the world.Due to the differences in economic policies and the maturity of capital marke ts in different countries,IPO underpricing rates are also different in various markets.The average IPO underpricing rate is significantly higher than the average underpricing rate in developed countries,and the underpricing phenomenon of emerging GEM is particularly evident.China's IPO underpricing rate has been decreasing year by year,but after setting the limit for the first day's daily limit,most companies' IPO underpricing rate is 44%,making the risk-free arbitrage phenomenon of the first day of new shares in the market more serious.In recent years,with the advancement of social science and technology and the innovation of various business models,coupled with the call of the national “mass entrepreneurship,innovation”,thousands of technology startups have experienced explosive growth,among them in PE/VC.A number of well-known high-tech enterprises have been born under the support of the organization.After many rounds of financing,the enterprises have gradually matured.Due to the huge customer market and the rapid growth of operating income,some technology companies are optimistic about the development prospects.However,due to the excessive investment cost in the early stage,it is necessary to finance the capital information asymmetry between external investors and listed companies,and play an authentication role for IPOs;the reputation variables of venture capital institutions are significantly negatively correlated with the IPO underpricing level.The result also verifies the certification function of the venture capital institution;the risk investment machine shareholding variable is positively correlated with the IPO underpricing but not significant,and the result does not meet the hypothesis;the exit mode variable coefficient of the venture capital institution characteristic is negative,indicating In the case of venture capital institutions withdrawing through IPO,it may affect the enthusiasm of investors in the secondary market,but the results are not significant and cannot be fulfilled.The price-increase ratio and turnover rate indicators are added to the variables to verify whether the pricing and supply and demand of the primary and secondary markets will affect.The IPO underpricing level shows that the relationship between turnover rate and IPO underpricing is not significant,indicating that the US market is new.The relative balance between supply and demand.Through the study of such representative Chinese stocks,it provides ideas for the relevant research of different listing places of the company,which helps China to learn from the experience of the mature stock market in the United States,and is conducive to the improvement of the management of venture capital institutions by the regulatory agencies.Policies and improving the pricing power of the primary market and the resource allocation efficiency of the secondary market,and at the same time have a certain positive effect on the establishment of a multi-level trading market in China and a sound and mature securities trading system.