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Research On Financing Mechanism Of Chinese Venture Capital

Posted on:2004-12-23Degree:MasterType:Thesis
Country:ChinaCandidate:X L HuangFull Text:PDF
GTID:2156360122470229Subject:Political economy
Abstract/Summary:PDF Full Text Request
Venture capital ,offered by the venture investor, is often invested into those high-tech or technology innovative enterprises which enjoy a rapid growth and substantial development. Its operation course includes two aspects: financing and investing. The financing of the venture capital, the prerequisite and foundation of venture capital operation is a very key point . At present, numerous small and medium-sized enterprises and high-tech enterprises of our country wish eagerly to get support from venture capital. The certain existing obstacles in financing mechanisms of the venture capital of our country exert a strong influence on the venture capital, and lead to its slow developing speed, relatively small scale and short supply.The financing of the venture capital is the course that the venture capitalist raises the fund from institutional investors ,and rich families and individuals. Then a principal-agent relationship is formed between investor and venture capitalist. Because there is information asymmetry between the two parties, it is apt to produce the adverse selection and moral risk. Therefore, venture capital should confirm the rational financing subject and set up a kind of effective encouragement and restraint mechanism in the course of financing venture capital, thus to reduce the transaction cost and raise the efficiency of the fund, and eventually realize the Pareto optimum risk duty and the Pareto optimum efforts level between investor and venture capitalist.This article attempts to utilize the normal analysis combined together with the positive analysis, exploring the financing mecha-nism of venture capital of the suitable national conditions of our cou-ntry. The article analyses the financing mechanism of the venture capital using the theory of dividing work and the theory of contract atfirst, Then compare different financing mechanisms of the venture capital in foreign countries, and draw a conclusion: The effective financing mechanism of the venture capital should make individual capital as the financing subject of the venture capital, and make limited partnership as the organizational form of the financing organ-ization of venture capital. Last part of article which is also the key point, carries on deep analysis with the existing problem in financing mechanism of venture capital in our country and puts forward the adjusting aim and the realitic choice of financing mechanism in our country's venture capital via considering our country's conditions.
Keywords/Search Tags:Venture capital, Financing mechanism, Information asymmetry, Limited partnership
PDF Full Text Request
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