Researching On The Impact Of Joint Venture Capital,Investor Sentiment And IPO Underpricing Rate

China’s capital market has developed for more than 30 years,and the abnormal phenomenon of high IPO underpricing rate has existed for a long time,which is not favourable to the sound and stable development of Chinese financial market,but also adversely affect the resource allocation function of the primary market,capital use efficiency,value investment guidance of the secondary market and so on.In the long run,it will hinder the normal operation of the real economy,further restrict the benign development of the capital market and form a vicious circle.In recent years,under the background of macroeconomic downward pressure and supply side structural reform,the science and innovation board market came into being.Its more market-oriented issuance system arrangement not only improved the construction of China’s multi-level capital market,but also improved the efficiency and capacity of enterprises serving technological innovation.However,the phenomenon of high IPO underpricing still exists significantly,which is disadvantageous to increase the trading activity and leads to prejudice the long-term development of the STAR market of SSE(Science and Technology Innovation Board market of Shanghai Stock Exchange).Thus,combined with the literature review of IPO Underpricing and the characteristics of the main issuers of science and innovation board,this paper constructs a theoretical analysis framework between joint venture capital,investor sentiment and IPO underpricing,supports the hypothesis through the empirical test results,and puts forward targeted countermeasures and suggestions.In terms of theoretical analysis,this paper theoretically combs and deduces the logical relationship and framework analysis among joint venture capital,investor sentiment and IPO underpricing,which is based on information asymmetry theory,venture capital and IPO underpricing hypothesis and behavioral finance theory.At the same time,combined with the characteristics of listed subjects on the science and innovation board and secondary market investors,this paper studies the interaction effect between joint venture capital and heterogeneous investor sentiment,and deduces the hypothesis to be tested through normative research.In terms of empirical test,this paper test the impact of the number of joint venture capital,joint venture capital reputation and heterogeneous investor sentiment on IPO underpricing,From the perspective of joint venture capital,this paper analyzes the influence mechanism of venture capital on investor sentiment heterogeneity and IPO underpricing.At the same time,further explore the mechanism between IPO Underpricing and joint venture capital from three dimensions: the number of joint venture capital in different groups,the shareholding ratio of joint venture capital and the quotation range of inquiry institutions.The main conclusions are as follows:First,Empirical conclusion of basic model.(1)The number of joint venture capital and IPO underpricing rate has significant positive correlation,which means that the more joint venture capital,the higher IPO underpricing rate;(2)The reputation of joint venture capital and IPO underpricing rate does not pass the empirical test;(3)There is a significant positive correlation between institutional investor sentiment and IPO underpricing rate,indicating that the investment behavior of institutional investors and the aggregation effect of funds have a positive role in promoting the share price of new shares;(4)There is no statistically significant relationship between individual investor sentiment and IPO underpricing rate;(5)There is a significant positive relationship between market heat and IPO underpricing rate,that is,compared with individual investor sentiment,when institutional investor sentiment is higher,IPO underpricing rate is higher;(6)The intervention of joint venture capital alleviates the positive correlation between institutional investor sentiment and IPO underpricing rate,which shows that when institutional investors find that joint venture capital participates in this signal,the secondary market valuation of new shares will become more rational;(7)There is no interaction between joint venture capital and individual investors,and the participation of joint venture capital will not have a significant impact on the relationship between individual investor sentiment and IPO underpricing rate.Second,further expand the research conclusions.(1)When the number of joint venture capital is in the interval(6,9],it can reduce the IPO underpricing rate compared with other intervals;when it is greater than 15,it will significantly increase the IPO underpricing rate;(2)there is no significant relationship between the shareholding ratio of joint venture capital and the IPO underpricing rate;(3)There is a significant positive correlation between the inquiry range and the IPO underpricing rate,indicating that the greater the inquiry range,the more inconsistent investors’ expectations of the company’s future development prospects,so there is more room for imagination in the secondary market.Based on the above conclusions,this paper puts forward some targeted policy suggestions from the perspectives of proposed listed companies,venture capital institutions,investors and regulators,such as alleviating the adverse selection risk between proposed listed companies and venture capital,establishing the concept of long-term value investment,optimizing the investor structure,establishing and perfecting the exit compensation mechanism and so on.