Impact Study Of Venture Capital On The Performance Of The GEM Companies

Venture capital has put venture capital funds to invest in newly formed venture enterprise in order to have high yield after the success of these enterprises. In order to alleviate the problem of financing of start-ups, this very mature investment patterns in foreign has began to develop in China. Start-up solve the issues of corporate finance at the same time through venture capital financing, with the operation of venture capital, thus improving the level of business performance.We can conclude that venture capital is able to influence business performance, improve the enterprise’s comprehensive strength by summary of the relationship between foreign venture capital and corporate, venture capital has been the impact of macro and micro environment. Because China’s venture capital market development time is shorter, relevant supporting policies is imperfect, the domestic capital market is not perfect, the conclusions of the study about the United States and other developed countries does not apply to for China’s national conditions, therefore the conclusions of the study by the foreign scholars in our country need to be further argument. Context of our environment, venture capitalists can influence enterprise performance need more empirical research. This article uses empirical analysis to study if the performance of venture capital can affect start-ups, makes up for the lack of empirical research on venture capital.A data set consisting of companies listed on the GEM board in Shenzhen on October30,2009to December31,2010is collected, and is divided into two groups according to whether have the risk of investment. In theory, venture capital firms can promote the development of entrepreneurial enterprises through the granting of financial and management support. Corporate performance is the efficiency and effectiveness of business management activities. The use of financial indicators to determine the performance is the most basic and main method, profitability Profitability is the ability to profit from outside, solvency can be a very good response management capacity and financial position of the enterprise, the achievements of the operational and development capabilities are good evaluation of the operators in the business process management business, and the results achieved by the growth and contribution. This article that measured the performance of entrepreneurial companies from a financial profitability, solvency, operational and development of these four aspects of a comprehensive measure, in order to a comprehensive, objective evaluation of the operating conditions of start-ups. In order to validate this view, this article uses the mean methods and descriptive statistics, examine the profitability, solvency, operation and development ability of the two groups of sample enterprise by independent sample T-test and Mann-Whitney Test, and finds out whether the risk investment agencies can significantly improve business enterprise management situation. The empirical results show the overall financial situation of the enterprise with venture capital is better than the enterprise without venture capital, the effectiveness of China’s venture capital did not play very well, and this is related to the problems of China’s venture capital market. Finally, we made sensible suggestions for the problems of venture capital market in China, such as broaden the financing channels of venture capital, and realize the diversified investors, improve legal mechanisms and sound tax policy, train talent of risk investment, ect.