Board Characteristics and IPO Underpricing in China : From the Perspective of Moderating Effect of Venture Capital

Using a sample of 863 offerings on the ChiNext Market in China from 2009 through 2020, we explore the roles of the board of directors as well as the moderating effects played by venture capitalists on IPO underpricing. We find that board reputation and board members’ experiences could lower the degree of IPO underpricing. Furthermore, there is a U-shaped relationship between IPO underpricing and board independence. The participation of venture capitalists tends to weaken the board in terms of reducing IPO underpricing. The findings provide empirical evidence from the perspective of venture capitalists on how to reduce IPO underpricing