An Empirical Research On The Interactive Effects Of Decision Factors Of Venture Capital

As a new business model, venture investment in China is still in the preliminarystages of development, the rapid growth of the venture capital presents a challenge tothe operating efficiency of those VC institutions who act as financial intermediaries.Many issues need to be solved such as VC/PE function alienation behaviors such asspeculation and development bubble、SMEs’ difficulties accessing to venture capitalas well as the lack of macro-policy environment For those venture capital institutionsin China who are still at an early stage, it is of great significance to quickly establishan effective governance mechanism, therefore ease the contradiction between venturecapital and start-ups.In this paper, we theoretically and empirically explored theinfluencing factors of venture capital decision-making wishes to solve those aboveproblems.By literature research of venture capital decision-making wishes, we try toexplore the deficiencies in the domestic and foreign research status. Finding that whatwe mainly lack is comprehensive、systematic and empirical analysis of influencingfactors of venture capital decision-making wishes. In particular, the interactive andsubstitution effects among the influencing factors which has not been precedentlystudied.Influencing factors of venture capital decision-making wishes.as the researchobject, application of Information Asymmetry Theory, Incomplete Contract Theory,Incomplete contract theory as the theoretical basis of this article, we build thetheoretical analysis framework, which is by expected return, expected risk,entrepreneurial ability, contractual control rights and the investment environment tostudy their impacts on venture capital decision willingness factors.Taking two stages to establish the theoretical hypotheses, the first stage toexamine the direct effects of the entire factors variable on decision-makingwillingness; the second stage is to build certain assumptions that affect the relationship among the variable factors, examining collaborative effects betweendecision-making wishes factors and the interactive effects among the various factorsvariables.Through the literature review, in-depth interviews, this article is to construct thecorresponding measurement model designing the measurement table of the relevantvariables and developing a questionnaire. The questionnaire is targeted at differentsectors of250venture capital institutions, using structural equation modeling methodof statistical analysis of data, and effectively validates the underlying assumptions.Finally, this paper analyzes the influencing factors on the mechanism of venturecapital decision-making wishes to draw the relevant conclusions.