Effects of Venture Capital on IPO Underpricing of Listed Companies on ChiNext

Abstract

Since the ChiNext stock market was launched in October 2009, attracted a lot of high growth companies to participate in, and at the same time, it appeared higher underpricing rate than developed markets. Recently, domestic scholars put the focus shifted to the ChiNext market, from different angles on the theoretical and empirical analysis. So this article mainly from the perspective of venture capital, we selected 456 IPO companies from 2010 to 2015 as samples, and found that the young VC is more motivated by reputation in the process of IPO, thus increasing the high level of underpricing.