Does Venture Capital Affect Accounting Conservatism?--Evdience From Growth Enterprise Market And Small&Medium Enterprise Stock Market

With the development of venture capital all around the world, the academic research on venture capital becomes more and more. Sampled on the companies of the growth enterprise stock market and small&medium enterprise stock market, this paper discusses the influence of venture capital on accounting conservatism, to move forward a single step, studies the relation of buy-and-hold stock proportion and accounting conservatism, try my best to enrich the documents of venture capital.First, as the growth enterprise stock market has begun in a short while, the study has time value. Second, the topic of the relationship between venture capital and accounting conservatism is rather new, at the same time, sampled on the public companies, this paper has a certain extent innovativeness, fill in gaps in this academic sector. At last, this paper makes comparative analysis between he growth enterprise stock market and small&medium enterprise stock market, investigates the differences of them, refers to the regulatory authority of market, investors and venture capital, has the practice and reference value.This paper has five parts:The first part is introduction, it states the research background, the meaning of research, methods, train of thought and innovation of this paper. The second part is the literature review, it reviews the domestic and overseas literature of venture capital all around the world. The third part is the theory analysis and hypotheses, it states the theories of venture capital, includes Monitoring Hypothesis, Certification Hypothesis, Grandstanding Hypothesis and Adverse Selection Theory. Then the hypotheses are raised. The fourth part is empirical analysis, it also states the source of samples, devise of variables and models, then makes empirical analysis. The fifth part is conclusion and revelation, states the research conclusion and the limit of the research, at the same time, looks into the distance of research.The research conclusion is venture capital can improves accounting conservatism notably in the growth enterprise stock market, buy-and-hold stock proportion and accounting conservatism has notably positive correlation. But venture capital cannot notably improves accounting conservatism in the small and medium enterprise stock market, buy-and-hold stock proportion and accounting conservatism has not notably positive correlation. It indicates venture capital has stronger monitoring effect in the growth enterprise stock market, compared with the small and medium enterprise stock market.