R&D And IPO Underpricing

R&D has always been the most important expenditure of innovative enterprises and is the key to improve their competitiveness and enterprise value.Although R&D investment is closely related to the value of enterprises,it is also an important source of information asymmetry between enterprises and external investors.Information asymmetry is an important reason for IPO underpricing.IPO underpricing refers to the phenomenon that an initial public offering of a stock trades at a price significantly higher than its offering price on the first day of listing on the capital market.Excessive IPO underpricing is not only bad for the allocation of resources but also leads to strong market speculation.Gem listed enterprises are mostly high-tech enterprises,which invest more in R&D compared with the main board and small and medium-sized board enterprises,so there is a higher information asymmetry.Whether this asymmetry caused by R&D investment will lead to higher IPO underpricing of gem companies is a question worthy of attention.As a professional investment institution,venture capital usually participates in the equity financing before the listing of high-tech enterprises.Joint investment,as a form of venture capital,is mostly adopted by venture capital institutions because of its advantages of good risk dispersion and resource sharing.However,joint investment is naturally related to the research and development activities of enterprises.It is worth discussing and studying whether its intervention has a moderating effect on the research and development investment and IPO underpricing and whether the different characteristics of joint investment will cause different effects.Based on this,this paper took the successful enterprises listed on gem from 2009 to 2018 as samples,and excluded the missing data of finance,insurance industry and R&D investment data to obtain a total of 715 samples.Empirical study on the relationship between R&D investment and IPO underpricing,and on this basis,further consider the role of syndicate venture capital in the adjustment between the two.Research on the moderating effect of the characteristics of syndicate venture capital on the R&D investment of enterprises and IPO underpricing.The research conclusions are as follows :(1)The higher the R&D investment,the more serious the information asymmetry between enterprises and external investors,resulting in a higher degree of IPO underpricing.(2)The involvement of venture capital has more "name-by-name effect",which intensifies the positive correlation between R&D investment and IPO underpricing.(3)The intervention of joint investment does not give play to its advantages of sharing information and resources to improve its supervision and management functions,but more aggravates the uncertainty of the value of R&D investment,making the positive correlation between R&D investment and IPO underpricing higher.(4)The reputation of the leading venture capital in syndicate venture capital can play a negative regulating role.The higher the reputation of the leading venture capital is,the more it can play the "certification effect",reduce the information asymmetry caused by R&D investment,and reduce the positive correlation between R&D investment and IPO underpricing.However,the holding time of leading venture capital cannot exert its negative regulating effect,and it cannot reduce the high IPO underpricing rate caused by R&D investment through longterm holding.Therefore,this paper puts forward some suggestions,such as increasing the disclosure degree of research and development information,choosing high reputation risk investment institutions,and training highly specialized investment personnel.