Research On The Impact Of R&D Investment On IPO Underpricing Under The Participation Of Heterogeneous Venture Capital

As the driving force for enterprise development and economic prosperity,innovation has been receiving more and more attention and attention from all walks of life in the past ten years.Many companies have included Research & Development in their core objectives for their own future development,and increased R&D investment,which not only enhances market competitiveness,but also promotes technological development.However,high R&D investment has also brought some problems.Initial Public Offerings companies are required to disclose R&D fees in recent years,but outside investors know little about companies' R&D,and most of the R&D spending has also affected the company's current profits,resulting in its value to be undervalued.Therefore,the information asymmetry and value uncertainty caused by R&D investment have caused the high financing cost of IPO enterprises,that is,underestimating the stock value and generating serious IPO underpricing.Most of Chinese high-tech enterprises choose to go public on the GEM.Therefore,compared with the companies listed on the main board and small and medium-sized boards,the IPO underpricing phenomenon of high-tech enterprises on the GEM is more obvious.At the same time,venture capitalists and venture capital institutions have generally participated in the initial public offering before the listing of the company,especially in the GEM market.Venture capital of different backgrounds can obtain high returns by participating in the IPO of unlisted companies and enable their capital to smoothly withdraw from the invested enterprises in the future.Moreover,using information asymmetry theory and signal transmission theory,many studies have shown that venture capital and R&D investment are important factors affecting IPO underpricing.However,few studies have shown whether venture capital plays a regulatory role between R&D investment and IPO underpricing.Therefore,this article studies the relationship between R&D expenses and IPO underpricing from the perspective of heterogeneous venture capital investment,which has positive effects on encouraging R&D,inhibiting venture capital opportunism,reducing IPO underpricing,and regulating stock market.Therefore,based on the theory of information asymmetry and the theory of risk capital,this paper uses the data of China's Growth Enterprise Market to study the relationship between R&D investment and IPO underpricing and the adjustment effect of venture capital in different backgrounds.This paper uses normative research method,empirical research method,based on information asymmetry theory and risk capital related theory,and selects 341 companies conducting IPOs on the China's Growth Enterprise Market from 2014 to 2017 as research samples and conducts empirical research by constructing multiple regression models to study the relationship between R&D investment and IPO underpricing and the effect of risk capital in different backgrounds.The experimental results show that:(1)R&D leads to a significant increase in IPO underpricing,and the higher the R&D investment,the more obvious the IPO underpricing.(2)The risk capital of different backgrounds has different adjustment effects between R&D investment and IPO underpricing.(3)The joint shareholding of heterogeneous venture capital can fully assume the supervisory function and play a role in reverse regulation of the relationship between R&D investment and IPO underpricing.Finally,this paper puts forward relevant opinions on improving the information disclosure system of the stock market,encouraging joint ventures of different background venture capitals,and optimizing the quality of venture capital.