Research On The Relations Between Investment Period And IPO Overvaluation Based On The Side Of Venture Capital

Came to world economic development today, the technological progress has become the main driver of economic growth. Implementation of technological change, cannot leave the financial support. Venture capital as a new financial system arrangement, has played an important role in promoting technological change. In America, for example, since the1990s, it is because the government’s emphasis on technological innovation and support, to launch new products continuously, form can produce huge economic benefit emerging industries, to make the U.S. economy continues to grow.Venture investors is an important way to realize a return on investment is the IPO exit, the key stage of venture investment to participate in enterprise management is management phase before the IPO. Then, this paper defined the concept of IPO investment, it refers to the period of investment to the IPO. As for investment, the length of it to reflect the management of venture capital institutions to participate in the IPO before time, also reflects the venture capital institution’s choice of different investment period.From perspective of venture capital to provide value-added services, venture capital institutions to participate in the management of the longer the time, to provide value-added services for the company, the enterprise’s net assets value-added will be larger, so the IPO premium than the higher. Venture investment industry in China, however, there are two problems:one is the insufficient venture capital value-added services; Second, investment stage backwards, venture capital institutions prefer short-term investments. Whether the presence of both of these problems will affect the degree of enterprise value added value and investment time limit, the relationship between, in turn, affect the IPO premium ratio relations with investment, make them produce negative relationship, this paper made an empirical analysis.In the empirical research part, made on the relationship between the IPO premium ratio of investment and negative correlation assumption, at the same time, in order to enhance the explanation of the model, the introduction of venture capital institutions to participate in the number two control variables and industry classification. Empirical study results show that the original hypothesis, IPO premium ratio and negatively correlated with investment, thus confirms the existence of the venture capital value-added services is insufficient in our country, as well as the investment phase one-way influence on IPO premium ratio and investment relationship.The body of the article structure is divided into four parts; The first part is relevant literature review, the thesis introduces the analysis of the causes of venture investment phase back at home and abroad and the introduction of value-added service function, The second part is the relevant theory is introduced, the venture investment, IPO premium ratio, value-added services, investment, made the definition stage, at the same time, it introduced the value-added service and venture investment phase selection related theory; The third part is the empirical part, this part firstly presents the research design, including the research hypothesis, selection of variables and the model design and samples, and then the empirical analysis, proved that the hypothesis is established. The fourth part is conclusion and prospect, reference related theory, combined with the author’s own understanding, explained our country venture capital stage backwards and the lack of value-added services, and give the corresponding countermeasures.