PE/VC-backed Companies Listed On GEM IPO Underpricing

Finance is the core of modern economy. In the financial markets, capital markets and gradually occupy the increasingly important position. IPO underpricing academia and practitioners to discuss the problem of warm underpricing is also very common in Chinese GEM IPO market, at the same time, most of the companies listed on GEM dormant including PE, VC and brokerage direct investment, including venture capital institutions, so the study of these venture capital institutions GEM IPO underpricing becomes relatively new sub-direction in an IPO underpricing.PE/VC-backed companies listed on GEM IPO underpricing mainly on the objects, listed on the Shanghai and Shenzhen Stock Exchange Placing Shares ban the introduction of policy changes based on the October30,2009to2012(day)291GEM companies to disclose the data, the use the stata12.0software and eviews7.0of software, focusing on PE/VC-BACKED GEM companies NON-PE/VC-BACKED GEM companies IPO underpricing of whether there is a significant differences in the various entrepreneurial investment characteristics and PE/VC-backed GEM companies IPO underpricing the correlation between the two core issues, and empirical analysis.After the interpretation of the basic theory, to enter The empirical analysis phase. First, from the four categories of factors analysis framework proposed in this article mainly on the eight main hypothesis and another30sub-hypothesis through empirical study hypothesis and sub-hypothesis basis, the following conclusions:IPO underpricing of risk compensation hypothesis was partially confirmed; the IPO underpricing certification theory for the GEM market in China is falsifiable. Factors not on the market "certification" which reduces IPO underpricing sub hypothesis in this paper, the authentication function, in addition to the two factors of audit institutions highly qualified and stationed in the number of venture capitalists more than the rest IPO underpricing process produces a significant impact; the IPO underpricing foam hypothesis was partially confirmed; adverse selection theory is falsifiable. At the same time, the reputation theory, the disagreement hypothesis and the positive feedback hypothesis were confirmed.In this series of conclusions on the basis of this paper, create "master relations Financial Group, including a number of recommendations.Finally, this paper also discusses the limitations of their own study, and future directions for future research.