The Impact Of Venture Capital On The Long-term Performance Of GEM IPOs

As an important carrier to broaden the financing channels for technology-innovative enterprises,China's GEM market has become the preferred financing platform for many small and medium-sized startups.Since venture capital institutions play an important role in the early,middle and late stages of the IPO of the invested company,does the shareholding of venture capital have an impact on the long-term performance of the listed company? What is the mechanism of influence? It is currently a concern of many fundraisers and investors.Further,studying the impact of venture capital on the long-term performance of IPO of GEM companies is of great significance for promoting the development of China's venture capital industry and promoting the improvement of IPO system.Due to the short opening time of China's GEM market,most of the existing researches have the following shortcomings.First,in the research on China's GEM market,the number of selected sample enterprises is insufficient,and the research results are contingent;secondly,due to the short time of establishment of China's GEM,domestic research on IPO performance of GEM companies mainly focuses on short-term research.The influencing factors of low pricing and the testing of related models,but few studies take long-term performance as the research object.Third,the selected benchmark yields are mostly the Shenzhen A-share index related to the GEM index,and the test results usually exist.Certain deviation.In this regard,in the sample selection,this paper further expands the number of sample companies selected,and uses the GEM index as the benchmark income to calculate the sample enterprises to buy and hold excess returns(BHAR);in the research direction,this paper focuses on the GEM companies.Long-term performance after one to three years after IPO;in the selection of variables,this paper innovatively introduces enterprise earnings management behavior as an explanatory variable,enriching the interpretation dimension of existing research;The method fully ensures the rigor of the research ideas.This paper selects 254 companies that choose GEM for IPO from May 30,2010 to December 31,2015 as a research sample,using a combination of literature research method,comparative analysis method and qualitative and quantitative analysis.The certification hypothesis,the supervision hypothesis,the reverse selection hypothesis,the name-by-name hypothesis are the theoretical basis,and the purchase and holding of excess returns(BHAR)as a measure of long-term excess returns,the long-term excess investment in China's GEM market,the long-term IPO of the invested enterprise The impact of performance and the mechanism of action are analyzed.Through qualitative and quantitative analysis,the paper draws the following conclusions: The average long-term performance of IPOs in the background of venture capital holdings is lower than that of non-risk investment holdings;the listed companies with risk institutions have higher pre-IPOs.Earnings management behavior,and this behavior has a negative impact on the long-term performance of the IPO of the invested enterprise;the long-term performance of the IPO of the invested enterprise is positively correlated with the reputation of the venture capital institution,but negatively correlated with the shareholding ratio of the venture capital institution;There is no significant relationship between the long-term performance of an investment company and whether it is jointly invested by multiple venture capital institutions.In the end,the relevant conclusions of this study are new empirical evidence for the study of foreign name-by-name theory in the Chinese market.On the basis of summarizing the above research conclusions,in order to promote the healthy and orderly development of China's GEM market and improve and standardize the venture capital industry,this paper puts forward relevant policy recommendations based on the status quo of domestic venture capital industry.