A Study on the Relationship Between Venture Capital Shareholding and IPO Underpricing of Listed Companies on ChiNext
|Keywords||Venture Capital ChiNext IPO Underprice Empirical Research|
This work has explored the influences of venture capitalists on the IPO underpricing on ChiNext. Firstly, the Value-added Theory, Certification Theory and Grandstanding Theory of Venture Capitalist as well as theories on IPO Underpricing have been reviewed. Based on the characteristics of Venture Capitalists on ChiNext, several factors are selected:whether or not a venture capital shareholding company, the number of venture capitalists, the share proportion of the head venture capitalist, the share proportion of all the venture capitalists, the number of directors related to venture capitalists and the total number of directors and supervisors related to venture capitalists. And several controlling variables are selected according to the theories of Asymmetric Information and Behavior Finance. Using a database of 61 public companies from September 30th,2009 to March 19th,2010 on ChiNext, a multiple linear regression model is set up to do the empirical research. The main conclusions are as follow.1、There is no significant difference of IPO underpricing between VC-backed and non-VC-backed companies on ChiNext. There is no evidence about venture capitalists’certification role.2、Both the share proportion of the head venture capitalist and of all venture capitalists can significantly explain the IPO underpricing. The higher the share proportion of the head venture capitalist or all venture capitalists is, the lower the IPO underpricing will be, and the influence of the former is more significant.3、The information of venture capitalists attending management has no significant explanation. The number of directors and supervisors related to venture capitalists does not have effective influence on the IPO underprincing.4、The IPO underpricings variant at different batches. The 28 listed companies in the first batch have much higher IPO underpricing level than the later batches.