Research On The Microcosmic Monitor Mechanism Of Venture Capital Operation

In the development strategy of social economic, developing high tech industry is the key point of economy development in every nation, and is one of the main sources to gain long-term national competitive advantage. After more than twenty years' development, China's high technology industry has got the first step. There is a huge gap in the high tech industry between China and the developed country. In order to speed up the development of our high tech industry, we must build up the microcosmic monitor mechanism of venture capital operation, which offer our high tech industry efficient momentum. So we need to make use of the successful experiences of developed country, and master the principium of microcosmic monitor mechanism of venture capital operation, especially the structures & effect of incentive & restriction mechanism, which can instruct us how to set up effective microcosmic monitor mechanism of venture capital operation.This paper focuses on all sorts of special mechanisms of microcosmic monitor mechanism of venture capital operation. It is based on the theory of the principal agent , contract economic and information, along the line of venture capital practice of the modern market economical nation, adopting the means of theoretical and demonstrative research, the paper makes an entirely systematic research on the microcosmic monitor mechanism of venture capital operation.The microcosmic monitor mechanism of venture capital operation includes investment arranging mechanism , joining management mechanism , corporate governance mechanism , incentive & restriction mechanism and so on. Every microcosmic monitor mechanism affects one another. The incentive & restriction mechanism, which is the internal dynamical mechanism, is the key point of microcosmic monitor mechanism of venture capital operation, actually it is how to reduce the agency cost between venture capitalist and entrepreneur and maximize the investor profit. Based on researching the structures & effect factor of agency cost through building up the model of venture capital principal agent, the paper sets upeffective incentive & restriction mechanism. The paper summarizes the international mature experiences of investment arranging mechanism, joining management mechanism , corporate governance mechanism and so on microcosmic monitor mechanism of venture capital operation. Finally, based on the analysis of microcosmic monitor mechanism of venture capital operation, the author builds up China's developmental model of microcosmic monitor mechanism of venture capital operation.