Analysis Of Market Effects On Support Of Venture Capital On Growth Enterprise IPO

The impacts of venture capital on enterprise approval probability and IPO under-pricingrate are studied in the thesis. The thesis firstly devotes to the definition and explanationof “Venture capital”. Researches of domestic and international venture investor on“Value-added function theory”,“Certification capacity hypothesis”,“Adverse selectiontheory” and effects on enterprise IPO under-pricing rate are reviewed. Based on ourcountry’s company listing system and related research achievements, the followingresearch hypotheses of the thesis are proposed: the enterprise approval rate is directlyproportional to the support of venture investor, reputation of venture investor, ventureinvestor with state-owned property and stockholding ratio of venture investor. Theenterprise IPO under-pricing rate is in inverse relationship with the support andreputation of venture investor.Based on the sample of all489enterprises that applied for approval from theestablishment of growth enterprise to Sep.31,2012, the correlation between thepresence as well as the characteristics of venture capital and enterprise approvalprobability is studied. It is found there is correlation between these factors andenterprise approval probability, but the correlation is quite weak. Then in the empiricalstudy part of the thesis, Logistic regression analysis is adopted to analyze venturecapital support and all characteristics of venture capital and their impacts on enterpriseapproval probability. It is found that the stock-holding rate and the characteristics ofventure capital have no significant effect on enterprise approval probability, whichmeans venture capital can’t efficiently promote smooth listing of the enterprise. On thebasis of enterprise approval probability analysis, multiple linear regression model isapplied to analyze the support and reputation of venture investor and their effects onenterprise IPO under-pricing rate, the research results indicate that the impacts of thesupport and reputation of venture investor on enterprise IPO underpricing rate areinsignificant, which shows the function of venture investor is not recognized byinvestors. Research results in the thesis show that the venture investors in our country isimmature, their proper functions are not fully performed. Finally, policy suggestions,according to the results of empirical study, is proposed in the thesis.