Board characteristics and IPO underpricing in China: The perspective of moderating effect of venture capitalists

Shuangjin Wang, Puxuan Wang, Richard Cebula () and Maggie Foley

Finance Research Letters, 2023, vol. 52, issue C

Abstract: Using a sample of 863 offerings on the ChiNext Market in China from 2009 through 2020, this study explores the roles of the board of directors and the moderating effects played by venture capitalists on IPO underpricing. The study finds that board reputation and board members’ experiences could lower the degree of IPO underpricing. There is a U-shaped relationship between IPO underpricing and board independence. The participation of venture capitalists tends to weaken the role of the board on reducing IPO underpricing. The ownership of venture capitalists has a modest impact on the relationship between IPO underpricing and board characteristics.

Keywords: Board of directors; Venture capitalists; IPO underpricing; Moderating effect (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:52:y:2023:i:c:s1544612322006675

DOI: 10.1016/j.frl.2022.103491

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