Research On The Process And Effect Of Venture Capital Participating In Corporate Governance Of The Small And Medium Enterprises

With the lunch of Shenzhen growth enterprise market, venture capital in China once again ushers in the development of peak. Venture capital's role in promoting small and medium enterprises development is no doubt, it provides not only financial support for small and medium enterprises to resolve their financing difficulties, but also improve the management and operation leavel of the small and medium enterprises through supervision and management, therefore venture capital is very important to the development of high-tech and enterprises quality improvement. This paper, using methods of literature review, interviews, comparative analysis and statistical, analyzes the process and result of the venture capital's intervention in small and medium enterprises governance, in order to offer some referrence for the further development of the venture capital in China. The main contents of this paper include:(1) Based on the related theory and literature at home and abroad, discusses systematically the entire process of the venture capital's intervention in small and medium enterprises governance, including the occasion of the intervention, the content of the contract (the way and method of the venture capital's intervention), supervision after the intervention and the final withdrawal of the investment, etc. This paper discusses the dynamic process of the venture capital's intervention in small and medium enterprise governance(2) During the discussion of the venture capital's intervention process in small and medium enterprise governance, compares the venture capital's intervention between China and the United States comprehensively, explore the similarities and differences between them.(3) Taking the capital market environment, legal environment and cultural environment in small and medium enterprises as the starting point, analysis deeply the factors that affect the venture capital's intervention in small and medium enterprises governance.(4) Using the listed companies on the Shenzhen small and medium enterprises board as the sample, performs a empirical analysis to find out the effect of the venture capital's intervention in small and medium enterprise governance, verify the venture capital's intervention and the intervention methods on the effect of small and medium enterprises governance.According to the reserach on the process and result of the venture capital's intervention, this paper argues that:(1) Venture capital's intervention in small and medium enterprises governance does promot the marketing value, but there is no significant improvement in governance level and enterprise performance.(2) Empirical analysis indicates that the management type of intervention has a greater impact on the governance result of the invested company, so venture capital should focus on the participation of specific management group.(3) Comparing the venture capital between China and the United States, indicates that, although the rapid development of Chinese venture capital, thers are many defects during the intervention process, so he development of China's venture capital industry still has long way to go.