Research On The Impact Of Private Equityinvestment On IPO Underpricing

The phenomenon of IPO underpricing has always been a common concern of the academic and practical circles.With the continuous development of China’s capital market,listing has become the best choice for most companies to obtain development funds.Private equity investment is the period from start-up to listing.It has brought opportunities for rapid development of enterprises,and has also reduced the problem of IPO underpricing to a certain extent;and the new system of new stock issuance promulgated in 2014 has certain restrictions on the first-day increase,breaking the previous scene of the capital market.This paper studies the underpricing of corporate IPOs by private equity investment under the new system.This paper sorts out theories related to IPO underpricing researched by previous scholars.Starting from the theory of reputation effect,recognition theory,signal transmission and other theories,using the data of companies listed in China’s A-share market from June 2014 to June2020,From the two aspects of the heterogeneity of private equity investment in my country and the heterogeneity of enterprises,this paper focuses on the impact mechanism of private equity investment on the IPO underpricing rate in the A-share market.The research results are as follows:Private equity investment institutions with high reputation can effectively reduce the IPO underpricing rate of enterprises,while private equity investment institutions with state-owned background can increase the IPO underpricing rate of enterprises.Background The role of private equity in promoting underpricing of corporate IPOs;in addition,with the support of private equity investment institutions,companies in the high-tech industry and companies in the growth and mature stages will have a higher underpricing rate when going public,and grow The IPO underpricing degree of companies in the stage is higher than that of companies in the mature stage;and the high reputation of private placement will inhibit the IPO underpricing rate of companies in different industries and life cycles.