| As a specific type of financial intermediaries, venture capitals have played an important and irreplaceable role in supporting the development of high-tech enterprises. The venture capital funds are mainly organized as limited partnership in western developed countries (such as US), and their main source is come from private capital. However, in China, corporate venture capital funds are major participants in the market, and the state-owned capital is the main source of venture capitals. Accordingly, the main goal of this disertation is to study the efficiency and performance and realted issues of Chinese venture capital investment. Following the the analytical paradigm of "market structure - behavior - performance" and applying the methods of empirical and case studies, this disertation investigates the behavirol modes of venture capital investment firms in selecting projects, monitoring investments and exiting from investments, and evalutes the related performences.Firstly, using the information from interviews with five venture capitalists (VC) of a large state-owned venture capital company, this disertation analyzes how the company systems, the management systems and the agency problems of state-owned enterprises affect the investment performances. We find that the state-owned venture capital company is reluctant to support start-ups because of the lack of VC's incentives and decision discretion, and the company CEO's willingness of taking high risks. While the company enforces strong corporate controls in its holding ventures, the monitoring efforts of VC are not enough because of the lack of incentives as well. In addition, the company does not adopt some contracting technologies to control high risks of ventures. As for capital exiting, enven though the company is able to provide some help for the IPO of invested ventures, it does not pay attention to choose the timing of exiting, that is also because the huge business interests are not linked to the VC's personal income. Secondly, this disertation empirically studies how Chinese VCs evaluate the management team in the process of choosing ventures. Using a sample of 110 high- tech ventures from a state-owned venture capital campany, and considering how these ventures obtain supports from the venture capital, this disertation examines the impacts of the characteristics and social capitals of entrepreneurs on the avalability of capital from VC. The results show that thare are significant positive effects of entrepreneurs'education and working experience abroad, social relationship networks and political connections on the participation of VC. However, the entrepreneur's level of education has insignificant relation with the likelihood of obtaining the investments from VC and the size of entrepreneur team is reversely related to the desirability of VCs.Thirdly, this disertation empirically studies the effects of venture capital on ventures'performances from the perspective of IPO efficiency. Based on a sample of 98 SMEs listed at the GEM of Shenzhen Stock Exchange until July 31 in 2010, this disertation examines the influence of the VC participation on the IPO underpricing of ventures. The results show that, while low participation of VCs has little effect on the IPO underpricing, the high and long participation of leading VCs have positive influence in lowering the asymmetric information between the ventures and the outside investors, therefore reducing IPO underpricing. Furthermore, the negative relationship between the ages of VCs and the IPO underpricing provides some support for the hypothesis of the grandstanding of young venture capital firms.Finally, this disertation presents a case study on a venture supported by a large state-owned venture capital firm. We first examine how the VC evaluate the project, make contract with the entrepreneur and help the entrepreneur using the information in the process of evaluation and monitoring. |
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