Author(s)

Jin Zijia, An Zhiyu

Corresponding Author

Jin Zijia

ABSTRACT

This paper studies the impact of the shareholding ratio of private equity investment on the IPO underpricing rate of invested enterprises from July 1,2014 to June 30,2020 in China's A stock market. The study found that the shareholding ratio of private equity investment is negatively related to the underpricing rate IPO invested enterprises. That is, the larger the shareholding ratio of private equity investment, the lower the IPO underpricing rate of enterprises, and the empirical research in this paper also provides some new theoretical ideas and basis for the study of private equity investment in Chinese stock market.

KEYWORDS

Private equity investment, IPO underpricing rate, heterogeneity, shareholding ratio