Study on the Impact of Venture Capital upon IPO Underpricing in China GEM

Targeting at the listed companies in China GEM,the paper analyzes the impact of venture capital on China GEM IPO underpricing,and further subdivides the VC into age,number,background and feature.The study finds that the firms with VC background have a higher degree of IPO underpricing than the firms without VC. The more the venture capitalists are,the lower the IPO underpricing degree will be. And the result supports the reputation hypothesis.