Analysis on VC's Heterogeneities' Impact on SME's IPO

Among venture capital in China,funds from government occupy a large proportion.This paper studies the impact of VC backed by government on China's SME's IPO underpricing and post - IPO return.The results indicate:VC backed by government have little impact on IPO underpricing and post - IPO return of companies financed.Hence,the results suggest that the government should not invest too much on venture capital,but focus on improving the development of environment of venture capital.