As a crucial part of ex-ante capital market regulation, the stock issuance review system in China screens firms, but also brings hidden costs for firm financing. By analyzing companies that applied for initial public listing (IPO) during 2010--2020, this paper studies the impact of government-backed venture capital (VC) on the time cost of going public. The results show that investment from government-backed venture capital can shorten the wait period by about five months, significantly improving the IPO efficiency. The influence is stronger when VCs are affiliated with the higher-level government, and when VCs hold a higher share of the company. The effect is weakened after the IPO review reform and when the review committee faces corruption investigations, suggesting that the underlying mechanism is through the favoritism effect on affiliated firms. The phenomenon cannot be explained by the alleviation of information asymmetry or the increase in firm innovation or profitability. The findings of this paper are informative for IPO registration reform.
[1] 张光利,薛慧丽,高皓.企业IPO价值审核与股票市场表现[J].经济研究, 2021, 56(10): 155-171.Zhang G L, Xue H L, Gao H. Corporate IPO value review and stock market performance[J]. Economic Research Journal, 2021, 56(10): 155-171. [2] 宋顺林,辛清泉.新股发行隐性成本与上市后业绩表现——基于IPO停摆外生事件的经验证据[J].经济学(季刊), 2017, 16(4): 1449-1476.Song S L, Xin Q Q. Implicit cost of IPO and performance after IPO: Empirical evidence from exogenous events[J]. Economic Quarterly, 2017, 16(4): 1449-1476. [3] 罗党论,汪弘.公司特质、 保荐人与过会时间——来自中国创业板上市公司的经验证据[J].证券市场导报, 2013(3): 17-24.Luo D L, Wang H. Corporate characteristics, sponsors and meeting time: Empirical evidence from China's GEM listed companies[J]. Securities Market Herald, 2013(3): 17-24. [4] 乔晗,汪贵州,汪寿阳.风险投资能筛选并培育优质企业吗? ——基于中国创业板的模糊断点回归分析[J]. 系统工程理论与实践, 2020, 40(12): 3059-3079.Qiao H, Wang G Z, Wang S Y. Can Venture capital select and nurture quality companies? Fuzzy regression discontinuity analysis based on GEM[J]. Systems Engineering — Theory & Practice, 2020, 40(12): 3059-3079. [5] Piacentino G. Venture capital and capital allocation[J]. The Journal of Finance, 2019, 74(3): 1261-1314. [6] Nanda R, Samila S, Sorenson O. The persistent effect of initial success: Evidence from venture capital[J]. Journal of Financial Economics, 2020, 137(1): 231-248. [7] 余琰, 罗炜, 李怡宗, 等. 国有风险投资的投资行为和投资成效[J]. 经济研究, 2014, 49(2): 32-46.Yu Y, Luo W, Li Y Z, et al. The investment behavior and investment effect of state-owned venture capital[J]. Economic research journal, 2014, 49(2): 32-46. [8] 许昊,万迪昉,徐晋.风险投资辛迪加成员背景、 组织结构与IPO抑价——基于中国创业板上市公司的经验研究[J].系统工程理论与实践, 2015, 35(9): 2177-2185.Xu H, Wan D F, Xu J. Venture capital syndicate membership, organizational structure and IPO underpricing: An empirical study of listed companies in China's growth enterprise market[J]. Systems Engineering — Theory & Practice, 2015, 35(9): 2177-2185. [9] 强皓凡, 严晗, 张文铖, 等. 国有风险资本与企业融资约束: 如愿以偿还是事与愿违?[J]. 财经研究, 2021, 47(11): 154-169.Qiang H F, Yan H, Zhang W C, et al. State-owned venture capital and corporate financing constraints: Is repayment backfired?[J]. Financial Research, 2021, 47(11): 154-169. [10] 黄俊,李挺.盈余管理、 IPO审核与资源配置效率[J].会计研究, 2016(7): 10-18.Huang J, Li T. Earnings management, IPO audit and resource allocation efficiency[J]. Accounting Research, 2016(7): 10-18. [11] 张学勇,张秋月.券商声誉损失与公司IPO市场表现——来自中国上市公司IPO造假的新证据[J].金融研究, 2018(10): 141-157.Zhang X Y, Zhang Q Y. Reputation loss and IPO market performance: New evidence from IPO fraud in China[J]. Journal of Financial Research, 2018(10): 141-157. [12] 李挺,赵宇,位豪强,等.保荐人项目经验、 IPO审核与资源配置效率[J].财经研究, 2019, 45(11): 70-82.Li T, Zhao Y, Wei H Q, et al. Sponsor project experience, IPO review and resource allocation efficiency[J]. Financial Research, 2019, 45(11): 70-82. [13] 张学勇,陈然,魏旭.承销商与重返IPO表现: 基于信息不对称的视角[J]. 经济研究, 2020, 55(1): 164-180.Zhang X Y, Chen R, Wei X. Underwriters and re-IPO performance: An Information asymmetry perspective[J]. Economic Research Journal, 2020, 55(1): 164-180. [14] 郭杰,张英博.企业择时还是政府择时? ——中国特定制度背景下IPO市场时机选择对资本结构的影响[J].金融研究, 2012(7): 137-153.Guo J, Zhang Y B. Enterprise or Government Timing? — The impact of IPO market timing on capital structure under specific institutional background in China[J]. Journal of Financial Research, 2012(7): 137-153. [15] 宋顺林,唐斯圆.投资者情绪、 承销商行为与IPO定价——基于网下机构询价数据的实证分析[J].会计研究, 2016(2): 66-72.Song S L, Tang S Y. Investor sentiment, underwriter behavior and IPO pricing: An empirical analysis based on online institutional inquiry data[J]. Accounting Research, 2016(2): 66-72. [16] 宋顺林. IPO市场化改革:共识与分歧[J].管理评论, 2021, 33(6): 270-279.Song S L. IPO market-oriented reform: Consensus and disagreement[J]. Management Review, 2021, 33(6): 270-279. [17] 祝文达,李洁,胡志强. IPO定价管制与新股质量:基于实物期权的理论模型与实证研究[J].系统工程理论与实践, 2021, 41(6): 1353-1367.Zhu W D, Li J, Hu Z Q. IPO price-cap and quality of new share: A theoretical and empirical perspective from real options[J]. Systems Engineering — Theory & Practice, 2021, 41(6): 1353-1367. [18] 彭涛,黄福广,李娅.国有风险投资的有效性: 认证与增值作用的比较研究[J].管理评论, 2022, 34(1): 26-36.Peng T, Huang F G, Li Y. The effectiveness of Government-sponsored venture capital investors: A comparative study on certification and value-adding[J]. Management Review, 2022, 34(1): 26-36. [19] 徐明.政府风险投资、 代理问题与企业创新——来自政府引导基金介入的证据[J].南开经济研究, 2022(2): 51-67.Xu M. Government venture capital, agency problems and enterprise innovation: Evidence from the intervention of government guidance funds[J]. Nankai Economic Studies, 2022(2): 51-67. [20] 刘映池,孟江超,朱宏泉.左右两难?基于A股市场新股发行定价市盈率倍数限制的分析[J].计量经济学报, 2021, 1(2): 409-425.Liu Y C, Meng J C, Zhu H Q. A Dilemma? The price/earning ratio cap of IPO pricing in Chinese stock markets[J]. China Journal of Econometrics, 2021, 1(2): 409-425. [21] 胡旭阳.什么样的拟发行人受发审委"青睐" ——我国股票发行审核委员会审核行为的实证分析[J].财贸经济, 2011(6): 60-67.Hu X Y. What kind of proposed issuers are favored by the Issuance Committee — An empirical analysis of the audit behavior of China's stock issuance audit committee[J]. Finance and Trade Economics, 2011(6): 60-67. [22] Bao X, Johan S, Kutsuna K. Do political connections matter in accessing capital markets? Evidence from China[J]. Emerging Markets Review, 2016, 29: 24-41. [23] Fan J P H, Wong T J, Zhang T. Politically connected CEOs, corporate governance, and Post-IPO performance of China's newly partially privatized firms[J]. Journal of Financial Economics, 2007, 84(2): 330-357. [24] 杜兴强,赖少娟,杜颖洁. "发审委"联系、 潜规则与IPO市场的资源配置效率[J].金融研究, 2013(3): 143-156.Du X Q, Lai S J, Du Y J. The relationship, latent rules and resource allocation efficiency of IPO market[J]. Journal of Financial Research, 2013(3): 143-156. [25] 黄亮华,谢德仁.核准制下IPO市场寻租研究——基于发审委员和承销商灰色关联视角[J].中国工业经济, 2016(3): 20-35.Huang L H, Xie D R. Research on rent-seeking in IPO market under approval system: Based on the perspective of grey correlation between the issuance committee and underwriters[J]. China Industrial Economics, 2016(3): 20-35. [26] 郭丽虹,刘凤君.发审委关联、 业绩粉饰与IPO 审核决策[J].改革, 2020(2): 102-115.Guo L H, Liu F J. Examination committee association, performance whitewash and IPO audit decision[J]. Reform, 2020(2): 102-115. [27] 曾庆生,陈信元,洪亮.风险投资入股、 首次过会概率与IPO耗时——来自我国中小板和创业板的经验证据[J]. 管理科学学报, 2016, 19(9): 18-33.Zeng Q S, Chen X Y, Hong L. Venture capital investment, probability of first meeting and IPO time: Empirical evidence from China's Small and medium Board and GEM[J]. Journal of Management Science in China, 2016, 19(9): 18-33. [28] Wang R, Wu C. Politician as venture capitalist: Politically-connected VCs and IPO activity in China[J]. Journal of Corporate Finance, 2020, 64: 101632. [29] 徐明.政府引导基金是否发挥了引导作用——基于投资事件和微观企业匹配数据的检验[J].经济管理, 2021, 43(8): 23-40.Xu M. Does government guidance fund play a guiding role? Test based on matching data of investment events and micro-enterprise[J]. Business and Management Journal, 2021, 43(8): 23-40. [30] 潘越,刘承翊,林淑萍, 等.风险资本的治理效应: 来自IPO暂停的证据[J].中国工业经济, 2022(5): 121-139.Pan Y, Liu C Y, Lin S P, et al. The monitoring role of venture capital: Evidence from IPO suspensions[J]. China's Industrial Economy, 2022(5): 121-139. [31] 罗党论, 唐清泉. 政治关系, 社会资本与政策资源获取: 来自中国民营上市公司的经验证据[J]. 世界经济, 2009(7): 84-96.Luo D L, Tang Q Q. Political relationship, social capital and policy resources: From private listed companies in China[J]. The Journal of World Economy, 2009(7): 84-96. [32] 章铁生,林钟高,徐德信,等.证券监管的选择性执行:以IPO核准为例[J].会计与经济研究, 2016, 30(3): 80-98.Zhang T S, Lin Z G, Xu D X, et al. Selective execution of securities regulation: A case study of IPO approval[J]. Accounting and Economic Research, 2016, 30(3): 80-98. [33] Gao H, Ru H, Tang D Y. Subnational debt of China: The politics-finance nexus[J]. Journal of Financial Economics, 2021, 141(3): 881-895. [34] Megginson W L, Weiss K A. Venture capitalist certification in initial public offerings[J]. The Journal of Finance, 1991, 46(3): 879-903. [35] Gompers P A. Optimal investment, monitoring, and the staging of venture capital[J]. The Journal of Finance, 1995, 50(5): 1461-1489. [36] Paga B, Wg C, Snkd B, et al. How do venture capitalists make decisions[J]. Journal of Financial Economics, 2020, 135(1): 169-190. [37] 董纪昌, 雷颜溪, 李秀婷, 等. 我国内幕交易特征与影响因素研究——基于不同时期的考察[J]. 系统科学与数学, 2021, 41(7): 1817-1833.Dong J C, Lei Y X, Li X T. Research on the characteristics and influencing factors of insider trading in China — Based on the investigation of different periods[J]. Journal of Systems Science and Mathematical Sciences, 2021, 41(7): 1817-1833. [38] 林康, 高翔, 杨翠红. "一带一路" 倡议对企业国内投资的促进效应研究——基于上市公司子公司的视角[J]. 计量经济学报, 2022, 2(2): 291-313.Lin K, Gao X, Yang C H. The promotion effect of the belt and road initiative on enterprises' domestic investment: From the perspective of subsidiaries of listed companies[J]. China Journal of Econometrics, 2022, 2(2): 291-313. [39] 朱宏泉, 刘晓倩, 李亚静. 经济政策不确定性对 A 股 IPO 抑价的影响研究[J]. 系统工程理论与实践, 2021, 41(5): 1197-1210.Zhu H Q, Liu X J, Li Y J. The influence of economic policy uncertainty on IPO underpricing in Chinese A-share market[J]. Systems Engineering — Theory & Practice, 2021, 41(5): 1197-1210. [40] Nahata R. Venture capital reputation and investment performance[J]. Journal of Financial Economics, 2008, 90(2): 127-151. [41] 董静,汪江平,翟海燕,等. 服务还是监控:风险投资机构对创业企业的管理——行业专长与不确定性的视角[J].管理世界, 2017(6): 82-103.Dong J, Wang J P, Zhai H Y, et al. Value-added service or supervisory control? Management patterns of venture capital institutes to entrepreneurial firms: Views from industrial specialty and uncertainty[J]. Journal of Management World, 2017(6): 82-103. [42] Bottazzi L, Rin M D, Hellmann T. Who are the active investors? Evidence from venture capital[J]. Journal of Financial Economics, 2008, 89(3): 488-512. [43] Khanna N, Mathews R D. Posturing and holdup in innovation[J]. Review of Financial Studies, 2016, 29(9): 2419-2454. [44] González-Uribe J. Exchanges of innovation resources inside venture capital portfolios[J]. Journal of Financial Economics, 2020, 135(1): 144-168. [45] 马百超, 古志辉. 交易所的股利监管政策如何影响上市公司创新?[J]. 系统工程理论与实践, 2021, 41(9): 2218-2238.Ma B C, Gu Z H. How does dividend regulation policy of exchange affect the innovation of listed companies?[J]. Systems Engineering — Theory & Practice, 2021, 41(9): 2218-2238. [46] 李敏才, 刘峰. 我国发审方式改革的制度分析: 一个研究框架[J]. 当代财经, 2012(7): 98-107.Li M C, Liu F. An institutional study of the reform of China's initial public offering system: A research framework[J]. Contemporary Finance & Economics, 2012(7): 98-107. [47] 余明桂, 回雅甫, 潘红波. 政治联系, 寻租与地方政府财政补贴有效性[J]. 经济研究, 2010, 45(3): 65-77.Yu M G, Hui Y F, Pan H B. Political connections, rent seeking, and the fiscal subsidy efficiency of local governments[J]. Economic Research Journal, 2010, 45(3): 65-77. [48] 陈运森,郑登津,李路.民营企业发审委社会关系、 IPO资格与上市后表现[J].会计研究, 2014(2): 12-19.Chen Y S, Zheng D J, Li L. Non-SOE IPO firms' relationship with stock issuance examination and verification committee, IPO verification and future performance[J]. Accounting Research, 2014(2): 12-19. [49] 吴超鹏,吴世农,程静雅,等.风险投资对上市公司投融资行为影响的实证研究[J]. 经济研究, 2012, 47(1): 105-119.Wu C P, Wu S N, Cheng J Y, et al. The role of venture capital in the investment and financing behavior of listed companies: Evidence from China[J]. Economic Research Journal, 2012, 47(1): 105-119. [50] 苟燕楠,董静.风险投资进入时机对企业技术创新的影响研究[J].中国软科学, 2013(3): 132-140.Gou Y N, Dong J. Relationship between timing of venture capital investment and the technological innovation of firms[J]. China Soft Science, 2013(3): 132-140. [51] 薛超凯,任宗强,党兴华. CVC与IVC谁更能促进初创企业创新?[J].管理工程学报, 2019, 33(4): 38-48.Xue C K, Ren Z Q, Dang X H. CVC & IVC: Which promotes innovation more effectively in entrepreneurial firms?[J]. Journal of Industrial Engineering and Engineering Management, 2019, 33(4): 38-48. [52] 徐虹,邓李华,刘家树.风险投资行业专长影响企业IPO审核吗? ——来自中小板和创业板的经验证据[J].会计与经济研究, 2020, 34(2): 77-93.Xu H, Deng L H, Liu J S. Does expertise in venture capital industry influence IPO review? — Empirical evidence from SME board and GEM[J]. Accounting and Economic Research, 2020, 34(2): 77-93. [53] 袁军, 邵燕敏, 王珏. 研发补贴集中度, 高管技术背景与企业创新——以战略性新兴产业上市公司为例[J]. 系统工程理论与实践, 2022, 42(5): 1185-1196.Yuan J, Shao Y M, Wang J. R&D subsidies' concentration, executives' technical background and innovation — An empirical research based on listed companies of strategic emerging industries[J]. Systems Engineering — Theory & Practice, 2022, 42(5): 1185-1196. [54] Cong L W, Howell S T. Policy uncertainty and innovation: Evidence from initial public offering interventions in China[J]. Management Science, 2021, 67(11): 7238-7261. [55] 马鹏飞, 隋聪. 股价超跌能驱动股票回购吗? ——基于一个准自然实验[J]. 系统工程理论与实践, 2020, 40(12): 3080-3094.Ma P F, Sui C. Do undervaluation drive share repurchases? — Based on a quasi natural experiment[J]. Systems Engineering — Theory & Practice, 2020, 40(12): 3080-3094. [56] 于明洋, 吕可夫, 阮永平. 供应链网络位置与企业竞争地位[J]. 系统工程理论与实践, 2022, 42(7): 1796-1810.Yu M Y, Lü K F, Ruan Y P. Supply chain network location and enterprise competitive position[J]. Systems Engineering — Theory & Practice, 2022, 42(7): 1796-1810. [57] 郑景丽, 王喜虹, 李忆. 智慧城市建设能否提升人才资本水平?[J]. 系统科学与数学, 2022, 42(5): 1261-1281.Zheng J L, Wang X H, Li Y. Can smart city construction improve the level of talent capital?[J]. Journal of Systems Science and Mathematical Sciences, 2022, 42(5): 1261-1281. [58] Cumming D, Dai N. Fund size, limited attention and valuation of venture capital backed firms[J]. Journal of Empirical Finance, 2011, 18(1): 2-15. [59] OPP C C. Venture capital and the macroeconomy[J]. Review of Financial Studies, 2019, 32(11): 4387-4446.