A Study On The Influences Corporate Venture Capital Has On Chinese Listed Firms' Innovation Performance And Its Affecting Factors

Although the history of corporate venture capital(CVC) in China is not that long,it has been growing rapidly.Nowadays CVC activities are common in Chinese listed firms;therefore,listed firms have become major partners in Chinese CVC market.However,domestic research on CVC is very insufficient compared to the fast growth of empirical practices.Moreover,it is known that one of the most significant strategic motives of CVC is to improve performance of technology innovation of the mother company.So far there is none empirical study on the performance change of technology innovation and its affecting factors after Chinese listed firms have CVC activities.Hence,it is very necessary to investigate into this field,in order to provide constructive and practical advices to Chinese firms to implement CVC activities.There are two major topics of this paper:(1)the influence of CVC on performance change of technology innovation;(2)affecting factors of the above influences.Based on the research review,this paper find that the knowledge needed in innovation is the bridge between CVC and the performance of technology innovation and thereby build up the theoretical framework,which is tested empirically with a sample of 55 listed companies in Shanghai Stock Exchange and Shenzhen Stock Exchange that participated in venture capital market by sharing or controlling venture capital companies.This paper applied the Paired-sample T test to test the Increase Rate of Patents,a measurement of the performance change of technology innovation. Further,a multiple linear regression model is set up to test the influences of the following factors:CVC Investment Intensity and Management Involvement,which stand for the involvement level of mother company;Knowledge Stock and Knowledge Relatedness,which stand for the knowledge absorptive capacity of the mother company.The findings of the paper are as follows:there is an evident performance improvement of technology innovation after Chinese listed firms participated in the CVC activities;Management Involvement and Knowledge Relatedness positively influence the relationship between CVC and performance change of technology innovation,but there is not evident influence found in CVC Investment Intensity and Knowledge Stock.Then,the paper offers several suggestions to Chinese firms on how to efficiently improve performance of technology innovation via CVC.