| There has been listed on the first day the phenomenon of high excess return in our IPOs market, which reflects that much attention is attracted by IPOs market. In the long run, however, IPO underpricing is not equal to long-term excellent performances, this makes the IPO underpricing a hot research scholars recently.On the other hand, capital market regulators have been promoted the market-oriented process for IPO pricing for a long time. However, the effect of reforms is almost unsatisfactory, and the IPO system is not successful correspondingly. Information asymmetry in issue market, conflicts of interest among market participants, high financing costs, these problems have been plaguing our IPO market, reducing the efficiency of resource allocation. Domestic scholars try to find reasonable explanations from a variety of angles, and tease out various factors that may impact IPO underpricing directly or indirectly. Their hard works made certain achievements.Among the various factors that may impact IPO underpricing, reputation of financial intermediation has been a persistent hot point, and underwriters’ reputation is the most representative one. In the process of IPO financing, financial intermediations, such as underwriter, accounting firm, and asset evaluation agencies, play the role of bridge. The existence of financial intermediaries is to reduce the degree of information asymmetry in the process of IPO. So that the information transfers more efficiently between financiers and investors.As a core agency, underwriters play a crucial role among the financial intermediaries. Considering from certification effect, underwriters with higher reputation is more likely to contract better qualified distribution business. Virtuous cycle benefits investors that they can evaluate the IPO qualification by evaluating underwriter reputation level. Display function from underwriter reputation contributes to the ease of information asymmetry between IPO market issuers and potential investors.Venture capital has been known for investing in high-risk-high-yield, and is similar to GEM TMT industry by a natural fusion. As a pioneer in the field of venture investment, TMT industry has been a investment hot point by its high-growth, high-risk, high return investment logic. TMT industry comprises enterprises to technology-intensive enterprises, mostly small and medium micro enterprises. In addition to the technical and policy factors, TMT industry is also booming and venture capital into the multi-level capital exit channels closely related.A major feature of venture capital is the mode of combining the operation of capital operation and corporate governance. Venture capital combines investment and financing, funding while providing management consulting services. Compared to other financing terms, venture capital gets longer investment cycle, lower fluidity, but higher value-added businesses after IPO. So, high risk and high return match is the most important feature of venture capital. As venture capital, broker direct investment impacts IPO underpricing positively from "Adverse Selection Effect" and By name Effect", and by the way, to play its "Screening and monitoring role". In view of the underwriters’dual identity of "underwriting sponsor" and "shareholder", broker direct investment is likely to bring about "conflict of interest" effect, leading to the high IPO underpricing.This paper selects the GEM IPO carried out for the study of TMT companies, from 30 October 2009 to the end of 2015. Discussing the relationship between underwriter reputation, direct investment and IPO underpricing, wishing to get positive conclusions.This paper is divided into six parts, each chapter’s content and framework are as follows:Chapter 1:Introduction section, including research background, purpose, significance, paper framework and innovation.Chapter 2:Theoretical analysis and literature review, reviewing from the reputation of the financial intermediary, the secondary market, venture capital three angles respectively, relevant theories and literature of IPO underpricing affection.Chapter 3:Concept definition section, making clear the concept of the reputation of underwriters, broker direct investment and TMT sectors.Chapter 4:The first empirical part of this article, investigating the effect on the reputation of underwriters to GEM TMT industry IPO underpricing.Chapter 5:The second empirical part of this article, investigating the effect on the broker direct investment to GEM TMT industry IPO underpricing.Chapter 6:Conclusions and policy suggestion. Policy suggestions are provided from three aspects:recommends underwriters that focus on training internal expertise to establish talent pool, improving risk management capabilities, focusing on the establishment and maintenance of a reputation, selecting of qualified project more strict. Recommends that broker direct investment in gold and experience to jointly support the real value of an enterprise breeders, lowering adverse selection, screening and supervision by, venture capital play a positive energy. At the same time the capital market policy recommendations put forward in this paper, it is recommended to continue to deepen the reform of the IPO market system, promote sound operation of underwriter reputation. Strengthen market supervision, and gradually establish a mechanism academic reputation.This article has the following innovations:(1) Innovation of the study:This article focus on the case of the GEM IPO research TMT industry, combining investment TMT industry venture capital, finance and technology to achieve a complex research and innovation;(2) Innovation of the sample:In this paper, the selected sample covered the TMT sector since the start of the GEM IPO all cases, the maximum level to maintain the continuity and adequacy of the sample;(3) Innovation on research:Focusing on the contribution and interpretation of "The broker factor" to IPO underpricing.Based on the model selection, sample collection, there may be a breakthrough in the study of the local dimension expand, this is also the prospect of future research. Sample packet may be more precise, while the external and internal expansion scope of the study should be considered, and strive for a more abundant and reasonable on methods. |
