An Empirical Study On Venture Capital's Influence On The Business Performance Of Innovative Enterprises

During the past two years, along with a series of good news such as the Shenzhen GEM's opening up, the introduction of Venture Capital Fund and the participant of a large number of foreign venture capital, China's venture capital industry has also entered a rapid development period.However, at the same time, the rapid development of China's venture capital industry theoretical studies have associated a bit insufficient for the rapid development of China's venture capital industry to provide the necessary practical basis. Domestic venture capital scholars' researches belong to macro research most, covering policy, law, institution, etc. Although there are some scholars have done an empirical study on the impact of the corporate venture capital, but these scholars are mostly involved in the business of the venture capital impact of the IPO. Research from abroad in recent years, venture capital role in promoting the growth of enterprises is a hot topic, many scholars have conducted research and made a theoretical and practical significance of research findings. Thus, in our first anniversary of the GEM, the in-depth study of venture capital for innovative business performance has important theoretical and practical significance on the impact of China's venture capital industry and the healthy development of innovative enterprises.This paper mainly examines the venture capital's impact on innovative business performance, and studied the impact of factors that promote business growth. This paper reviews the domestic and foreign scholars'empirical and related theoretical research on venture capital for innovative business performance. Then detailed descript the performance of venture capital in the GEM, including the venture capital institutions'investing performance, and the venture capital's problems in the GEM.Then by independent samples T-test, observing if there are significant differences between the corporate with venture capital invested and corporate with no venture capital background. Then by building a multiple linear regression model (panel data),analyzing the factors that influenced venture capital business performance, including the reputation of venture capital institutions, the proportion of the total venture capital holding, venture capital investment time and so on. Through theoretical analysis and empirical research, the paper reached the following conclusions:Overall, venture capital is very active in the GEM, the amount of invenst and proportion of venture capital are all more than private equity and direct investment, however, venture capital, there are some problems, such as VC is almost like PE, has seriously harmed the healthy development of venture capital industry.There were no significant differences in the operation performance between GEM venture capital holdings and non-operating results of listed companies,but venture capital holding company's operating performance indicators' mean is better than the mean of non-venture capital holding company.The level of venture capital's reputation for innovative companies have a positive impact on net assets return, venture capital's total stake of the companies have a negative impact on net assets return.Venture capital investment's length in investment has a negative impact on the return on total assets and net profit growth rate, but has a positive impact on the solvency of the innovative enterprises.