JFRM  Vol.7 No.1 , March 2018
An Empirical Research on IPO Exit Performance of ChiNext
Abstract: By virtue of correlation analysis and regression analysis, this paper empirically studies influencing factors of venture capital exit return based on IPO through Shenzhen ChiNext Market over the 2015 to 2016 period, and combines the empirical findings with the development status of venture capital industry in China to present some suggestions and countermeasures. The research results show: The rate of return is significantly positively correlated with operation period, investment industry and issuance price, and significantly negatively correlated with investment cycle. In addition, there is no significant correlation between rate of return and remaining variables (average price-earnings ratio of ChiNext, stock cycle, amount of management capital, investment scale and location of venture capital institutions). Based on the fresh data of the ChiNext, this paper presents the investment environment of small and medium-sized enterprises in China, which can provide good references and advices for the development and investment of the venture capital institutions. However, there may be some deviation in the conclusion of this paper due to certain subjectivity in the sample selection.
Cite this paper: Ding, Y. (2018) An Empirical Research on IPO Exit Performance of ChiNext. Journal of Financial Risk Management, 7, 99-108. doi: 10.4236/jfrm.2018.71006.

[1]   Bygrave, W. D., & Timmons, J. (1992). Venture Capital at the Crossroads. Boston: Harvard Business School Press

[2]   Cheng, S. W. (2013). Ch. 5 of Statistics Section: Venture Capital Exit and Performance. In China Venture Capital Yearbook (pp. 298-312). Shenzhen: China Venture Capital Research Institute.

[3]   Cheng, S. W. (2014). Ch. 5 of Statistics Section: Venture Capital Exit and Performance. In China Venture Capital Yearbook (pp. 285-299). Shenzhen: China Venture Capital Research Institute.

[4]   Cumming, D., & Macintosh, J. (2001). Venture Capital Investment Duration in Canada and the United States. Journal of Multinational Financial Management, 11, 445-463.

[5]   Das, S. R., Jagannathan, M., & Sarin, A. (2003). Private Equity Returns: An Empirical Examination of the Exit of Venture-Backed Companies. Journal of Investment Management, 1, 152-177.

[6]   Fan, B. N., Shen, R. F., & Chen, D. J. (2001). Index System Research on Growing Evaluation of Risk Enterprise in China. Science Research Management, 22, 112-117.

[7]   Gottschalg, O., Phalippou, L., & Zollo, M. (2004). Performance of Private Equity Firms: Another Puzzle. INSEAD Working Paper. 231-267.

[8]   Hellmann, T. (2000). Venture Capitalists: the Coach of Silicon Valley. Stanford: Stanford University Press

[9]   Kaplan, S. N., & Stromberg, P. (2004). Characteristics, Contracts, and Actions: Evidence from Venture Capitalist Analyses. Journal of Finance, 10, 341-401.

[10]   Ljungqvist, A., & Richardso, M. (2003). The Cash Flow, Return and Risk Characteristics of Private Equity. Finance Working Paper, No. 03-001,329-356.

[11]   Lu, Z. Y., & Li, P. (2008). A Comparative Research on the Exit Mechanism of Venture Capital in China. Economic & Trade Update, 6, 22-25.

[12]   Mason, C. M., & Harrison, R. T. (2002). Is It Worth It? The Rates of Return from Informal Venture Capital Investments. Journal of Business Venturing, 17, 211-236.

[13]   Phalippou, L., & Zollo, M. (2006). What Drives Private Equity Fund Performance. Financial Institutions Center, 6, 103-120.