Study On The Impact Of Venture Capital Investment On The IPO Underpricing Rate Of Listed Companies On The Sci-Tech Innovation Board

IPO underpricing is ubiquitous in the stock markets of all countries in the world,which has been a hot topic concerned by theorists and practitioners for a long time.IPO underpricing refers to the IPO issue price is lower than its first-day closing price.An excessively high IPO underpricing rate will damage the wealth of the original shareholders of the start-up company.In recent years,China’s capital market shows a good development trend.With more and more venture capital institutions trying to obtain high returns by investing companies that plans to go public in various sectors,the IPO underpricing rate of listed companies in China has been at a high level for a long time,which is not conducive to the improvement of capital allocation efficiency and the steady development of listed companies.The Sci-Tech Innovation Board was proposed by Chinese President Xi Jinping in November 2018 and officially launched on June 13,2019.It is a newly established sector independent of the original capital market sectors.Most companies listed in this sector belong to high-tech industries such as the Internet,big data,cloud computing,new materials,new technology and AI.Compared with other sectors,Sci-Tech Innovation Board encourages high-tech companies to go public,and allows not-yet-profitable companies to list,which effectively shortens the IPO waiting time of high-tech companies,and is conducive to increasing the enthusiasm of venture capital institutions to invest in high-tech companies.Therefore,studying the impact of venture capital institutions on the IPO underpricing rate of listed companies on the Sci-Tech Innovation Board is not only a prerequisite and basis for achieving a balanced and efficient allocation of capital market funds,but also an inevitable requirement for promoting the steady development of China’s high-tech companies.Based on the above,this article takes the impact of venture capital investment on the IPO underpricing rate of listed companies on the Sci-Tech Innovation Board as the main research content.It explains and analyzes the related concepts and theories of venture capital investment and IPO underpricing rate,formulate research hypotheses based on the analysis of the impact mechanism of venture capital on the IPO underpricing rate of listed companies,and selects 295 companies listed on the Sci-Tech Innovation Board from 2019 to 2021 as the research sample.Through variable selection and construction of a multiple regression model,empirical research is conducted on the impact of venture capital investment on the IPO underpricing rate of listed companies on the Sci-Tech Innovation Board.Finally,based on the empirical research results,relevant suggestions on effective control of the IPO underpricing rate of the listed companies are put forward,with a view to providing valuable reference opinions for promoting the coordinated development of venture capital institutions and listed companies on the Sci-Tech Innovation Board.