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Domestic Venture Capital Industry Implementation Of The Limited Partnership To Explore

Posted on:2004-07-18Degree:MasterType:Thesis
Country:ChinaCandidate:H J LiuFull Text:PDF
GTID:2206360125461291Subject:Business Administration
Abstract/Summary:PDF Full Text Request
Venture Capital (VC) is a kind of special Financial Capital, which plays more and more important roles in the economy. But till now VC in China hasn't been operated in mature model and in industrial scale. The main reason of the flaw is originated from the current VC system structure. An entire market-oriented investment mechanism must be the direction for future development of VC. Domestic VC's structure should evolve into a form that realizes the real financial value of national VC corporation. Limited Partnership (LP), the dominant VC organization form in USA, will certainly come into the visual field of domestic VC industry.Firstly, this paper briefly reviews the history and status quo of VC in China, and analyses the current problems in domestic VC from some typical cases.Secondly, by citing the related theories of New Economics, this paper reviews LP-an organization form with historical origin-from a new angle. The particular function of LP in the integrated effect between the modern financial markets and the VC is roundly discussed.There is inherent logic why VC companies take LP as their organization form. LP is not only just the outside form of the system arrangement, but also has value that managerial human capital participates in the distribution of the net income. LP indirectly makes price of the human capital, solving the problem of high uncertainty of the "Enterprise Contract" for those organizations that greatly rely on human capital in their operation.Thirdly, with the Modern Theory of Management, the paper proposes that based on highly asymmetric information in the VC market, the LP naturally suits special arrangement of the principal and agency relationship.Simultaneously, this paper analyzes one of the most mature VC market-USA, forming broader international view for this topic and grasping thespirit of the discussion.Fourthly, through three ways of mathematical analyze for human capital, this paper discusses the possible mechanism in human capital pricing (highly human capitalized organizations).Fifthly, related to the newest LP experiments in domestic VC companies, this paper discusses each case, and puts forward the strategy for the possible future development of domestic VC market.Finally, to summarize the above discussions, this paper points out that financial arrangement of LP has its practical meaning in solving the system constructing problem of domestic VC; As the cases in this paper have shown, despite the twists and turns, the implementation of LP in China has become a main trend of future development; moreover, some practices have even broken the international tradition, and adequately exhibited the vitality of the system.Today, under the era that China vigorously expands the financial markets,it is worthy to deeply investigate and popularize LP.Liu haoJun(MBA) Directed by Prof.Pan guolmg...
Keywords/Search Tags:venture capital, human capital, limited partnership
PDF Full Text Request
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