Venture Capital,enterprise Innovation Ability And IPO Underpricing

IPO,English full name initial public offerings,Chinese full name initial public offering.IPO underpricing means that the closing price on the first day of listing is much higher than the issuing price,and the excess return can be obtained on the day of listing.IPO underpricing is widespread in the global capital market,but it is particularly high in China’s capital market.Venture capital came into being in the 1990s.It is the most important way of business operation to invest in start-up enterprises and withdraw from the company after listing.After the opening of China’s growth enterprise market,venture capital has developed rapidly.With the further deepening of the registration system reform,the research on the relationship between venture capital and IPO underpricing rate of gem and scientific innovation board plays an important role in improving the market pricing efficiency,improving the supervision and management system of gem and scientific innovation board,and promoting the development of venture capital institutions.This paper selects 118 companies listed on the gem from January 1,2019 to December 31,2020 and 172 companies listed on the science and technology innovation board from July 22,2019 to December 31,2020 as the research objects,and analyzes the function mechanism of venture capital institutions in promoting the listing of start-ups.It is found that venture capital affects IPO underpricing through enterprise innovation ability,That is,there is a transmission path from venture capital to enterprise innovation capability to IPO underpricing.Among them,the more the total number of venture capital institutions in gem and the number of venture capital participation in the two to three years before listing,the lower the IPO underpricing rate;The more the total number of venture capital institutions and the number of venture capital three years ago,the higher the IPO underpricing rate.The difference between the two markets is that it is easier for venture capital institutions to reduce their holdings and exit.The more venture capital institutions invested in the early stage,the easier it is to produce adverse selection problems and improve the IPO underpricing rate.It is found that the quality of venture capital institutions and investment duration have no effect on IPO underpricing in gem and scientific innovation board,which may be caused by the weak signal transmission efficiency of venture capital.Finally,based on the research conclusions,this paper puts forward relevant policy suggestions for the development and improvement of venture capital institutions,supervision and management departments and innovation and entrepreneurship enterprises.