An Empirical Research On Listed Companies' Benefit From Corporate Venture Capital And Its Affecting Factors

Corporate venture capital (CVC) appeared in China in 1998, and it has been growing rapidly from that time. Listed companies' CVC is one of the major parts of Chinese CVC activities, making an important portion in the whole VC market. So it is very meaningful to research the CVC activities of listed companies for the healthy development of domestic VC market. Domestic academia's research on CVC seems very insufficient relative to the development of empirical practice, while foreign researchers have given much attention to it.This paper researched empirically the CVC activities of domestic listed companies, trying to resolve two kinds of questions: what's the benefit that listed companies have gained from CVC? What factors affect the benefit, and how? On the basis of research review, the paper applied the theory of enterprise synergism to build a theoretical framework, which was tested empirically with a sample of 85 listed companies in Shanghai Stock Exchange and Shenzhen Stock Exchange that participated in venture capital market by sharing or controlling venture capital companies. The benefit that listed companies gained was examined by the method of Paired-sample T test, with the change of Return On Assets (ROA) adjusted by average industrial level as the measurement. According to the factors considered in the theoretical framework, some variables were picked to build a multiple linear regression model to analyze the effect of these factors on listed companies' benefit, including industrial relativity, management relativity, subjective willing for synergism, the scale and growth of listed companies, etc. And Backward Method was used in regression analysis.The results of this paper have given some indications. Firstly, CVC did not bring evident benefit to domestic listed companies in short term, while brought bad results in long term. Secondly, the industrial relativity between the listed company and the portfolio firm in CVC activity didn't make the benefit of the listed company different evidently in short term, but in long term apparently. Thirdly, appointing the senior manager(s) of the listed companies to the portfolio firm can promote the synergism and ensure the benefit of the listed companies mostly. Fourthly, the benefit of listed companies is positively related to the proportion of CVC investment to the total asset of listed companies in short term, but not evidently in long term. At last, according to the results of the research, the paper gave some reasonable advices for the better development of Chinese CVC at both macro-level and micro-level.