Author(s)

Zifan Li

Corresponding Author

Zifan Li

ABSTRACT

With the rapid development of Private Equity (PE) and Venture Capital (VC), more and more companies receive funding before going to public. This article focuses on the impact of PE/VC’s investment on firms post IPO performance, using data from Chinese Shanghai Stock Exchange (SSE) Sci-Tech innovation board (star) market to conduct a regression model. According to the analysis, there is indeed a positive relationship between PE/VC presence and growth rate in share price, with coefficient being 0.147. These results demonstrate the positive impact of PE/VC and provides investors confidence when buying backed companies’ stock, which shed light on exploring the inherit effects on investment.

KEYWORDS

PE/VC, post-IPO performance, Chinese market