Research On Principal-agent Problems And Administration Mechanisms Of Venture Capital

Venture capital is a special way of investment and financing, in the process of venture capital operation, ownership and control power of the capital are separated, existence two principal-agent relationship, One is between the investor and the venture investor; another is between the venture investor and the venture enterprise. So, the principal-agent problems are more complicated and the agent-chain is increased. In order to settle these problems, a series of complete administration mechanisms are needed.This paper carries on network analysis to the operation course of venture capital in terms of microcosmic, and passes the principal-agent relation interests model established between investor and venture investor, venture investor and venture entrepreneur, having deeply analyzed the principal-agent problems in the process of venture capital operation under the information asymmetry condition. On the basis of that, design a series of complete administration mechanisms to resolve principal-agent problems, reduce the principal-agent hazard and improve the operating efficiency of venture capital. Finally, connected with the practice instance of the venture capital development in current stage in our country, on the basis of preceding paragraphs, some suggestions are given to develop and perfect the administration mechanisms from the side of the principal-agent relationship. Especially, this paper have put forward the idea of setting up the new organizational form of venture capital institution of our country: on the foundation of making the existing company of revision, introduce the encourage and tied mechanism of the limited partnership, to design scientifically the institutional framework, function and duty of every department, investment decision procedure and encouraging tied mechanism, etc., strive to resolve principal-agent problems of our country, reduce the principal-agent hazard, pursue the largest investment return.