The Impact Of R&D Investment On IPO Underpricing

R&D investment has made significant contributions in promoting the growth of enterprisesand increasing the social and economic value of enterprises.The arrival of the knowledge-based economy era means that technological innovation has profound implications for the long-term healthy development of enterprises,so R&D investment occupies a very important position in the development of modern enterprises.Correspondingly,the increase in R&D investment will increase risk of the company,reducing the investor's willingness and for investing those companies.If the IPO company can fully disclose R&D information,the information user will form a reasonable expectation on the company's future performance and development prospects,correctly judge the true value of the company,thereby reducing the underpricing rate of the enterprise IPO.The macro market where the company is locatedwill also have an impact on related factors.This article used the 569 companies listed on the GEM IPO from 2009 to 2016 as research samples,and examines the relationship between IPO underpricing and R&D investment,R&D information disclosure quality,market mispricing of R&D revenue and marketization process.Theresults show that the R&D investment of the company significantly affects its IPO underpricing rate,and the high-quality R&D information disclosure level can effectively mitigate or even reverse this effect.When the market errorly underestimates the R&D income of the company,R&D investment resulting in the degree of IPO underpricing will intensify.Compared with companies in regions with higher marketization,companies in regions with lower marketization will have higher IPO underpricing due to R&D investment,but marginal effect due to R&D information disclosure will be reduced.Finally,this article puts forward policy recommendations from the aspects of building a mature market environment and so on.