The Effects of the IPO Policy and Venture Capital Characteristics on the IPO Underpricing Phenomenon of Newly-Established Firms——Based on Data of China’s Growth Enterprise Market from 2009 to 2015
The Effects of the IPO Policy and Venture Capital Characteristics on the IPO Underpricing Phenomenon of Newly-Established Firms——Based on Data of China’s Growth Enterprise Market from 2009 to 2015
MA Yan-ran, CAI Jian-feng
School of Management, Northwestern Polytechnical University, Xi’an 710072, China
Abstract Nowadays more venture capital institutions participate in newly established firms and exit in the form of IPO. Based on the institutional changes in IPO, this paper adopts as sample data of newly-established firms in Growth Enterprise Market from October 30, 2009 to November 31, 2015. It then examines IPO underpricing in stages in an attempt to reveal the influence of venture investment and its form of involvement on IPO under pricing in newly-established firms. The result shows that the participation of venture capital helps to reduce the start-up underpricing of newly established firms. Joint venture investment is more effective in reducing the level of underpricing in the verification stage while the private background of venture capital is most effective to reduce the IPO underpricing.
MA Yan-Ran,CA Jian-Feng. The Effects of the IPO Policy and Venture Capital Characteristics on the IPO Underpricing Phenomenon of Newly-Established Firms——Based on Data of China’s Growth Enterprise Market from 2009 to 2015. Economic Survey, 2018, 35(3): 0160.
2018, Vol. 35 
