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Research On The Legal Form Of Venture Capital Organization

Posted on:2006-05-30Degree:MasterType:Thesis
Country:ChinaCandidate:P J WeiFull Text:PDF
GTID:2166360155475798Subject:Economic Law
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Venture capital is a new pattern of capital management system which invests alongside management in young, rapidly growing companies that have the potential to develop into significant economic contributors but with higher risks at the same time, expecting to gain higher rewards. This thesis is from dual-angle of economics and law to analysis the three kind of venture capital firm organization. And in the base of referring some developed country's experience, the author brings forth new ideas in our country's venture capital organization. I expected this thesis can benefit to the development of our country's venture capital.This thesis is divided into four chapters.The first chapter is the summarization of the fundamental theory. Firstly, it introduced briefly some basic concept. Then, the thesis elaborated that in the operating system composed by the venture investor, venture capital firm and venture capital-back firm, the organic venture capital firm is the medium to link the venture investor and venture capital-back company. It plays crucial role, and is the nucleus of venture capital system. Adopting what organization form will affect the efficiency of venture capital. So the key to guarantee the venture capital success is decided by how to organize a reasonable and efficient firm and through it to solve the principal-agent and incentive problem. So the relating law system, especially the enterprise law system has the decisive effect to the venture capital mechanism's perfection and maturation.In the second chapter, using economics and law principle to analysis and compare the three kind of venture capital firm organization: corporation, limited partnership and trust fund, we can find that each form adopted difference system in some important aspect which affect the efficiency of venture capital, such as founding and operating style and cost of venture capital, mechanism of constraints and incentives etc. We can conclude that each form has its advantage and disadvantage. Venture capital act as a special investment system, which form is be choice depend on the market body's reason. The law system as a kind ofinstitution supplement should provide perfect, multi-choice and low cost rule.In the third chapter, by comparing several representative countries and district's organization form, the thesis concluded that the choice of venture capital organization form is decided by many factor, such as the country's history, culture, development level of economy, development degree of the capital market and the country's law, regulation and policy etc. Each form has successful show in different country or district. A country should choose suitable form according it self's condition.In the last chapter, after analyzing the most outstanding feature and the law barrier of Chinese venture capital organization form, the thesis think that how to make our country's venture capital from imperfect into more perfect is a crucial task and need to research and resolve in a short time. The venture capital act as the base of the whole venture capital system also needs innovative law institution to guarantee. In order to development our country's venture capital, we should perfect the venture capital organization form, insist in the diversity principle to establish corresponding law mechanism, and to improve corresponding legality environment, to satisfy difference needs of venture capital.
Keywords/Search Tags:venture capital organization, legal form, corporation, limited partnership, trust fund, perfect in law
PDF Full Text Request
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