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.