Reputation Risk Investment (house) And The Relativity Analysis Of Listed Companies

By answering the question "why capital market need venturecaptital?" and according to transaction cost, information economics,and reputation model, this dissertation researched the role of the smalland medium-sized enterprise board with Angle of the performance ofthe company issued discusses risk investment in the listed companysperformance of the role of the research on risk investment reputation"information verification" the importance of function, this paperanalyzes the reputation mechanism on the significance of the venturecapital industry. In this paper, the China securities market data, theempirical analysis risk investment reputation and listed enterpriseperformance relationship, and to explore the venture investment inindustry to the listed companies in the medium and long termperformance lack of significant the reason of the influence.This paper argues that the importance of the presence of venturecapital is not just reflected in accelerating the conversion of industrialupgrading and technological productivity, more importantly, is theventure capital for the capital market provides important informationforensic capabilities. Most knowledgeable about business-to-ownsituation, as investors on the secondary market due to lack of expertiseand sufficient resources to understand, often difficult to obtaininformation on the enterprise a complete and rational investment. It isbased on the existence of this risk, this feature of the venture capitalgreatly alleviate the information asymmetry between investors andlisted companies in the stock market and the resulting adverseselection.In theory, a stock market, if the reputation mechanism can play afull role, students may be less than the following relationship: First,venture backed companies than venture backed enterprises have higher initial returns and long-term returns. Only in this case, venturecapitalists can in the stock market to play a positive role and reputationmechanisms can play a role. Second, venture capitalists reputationrating with the quality of listed companies are related to the highreputation venture capitalists, investment and enterprise performancebusiness performance is superior to moderate reputation. This isbecause the effective reputation mechanism, the venture capitalistsreputation represents the ability of venture capitalists, good venturecapitalists tend to prove the correctness of its prediction of the futuredevelopment of enterprises, better supervision and promote thehealthy development of enterprises. The quality of the venturecapitalists reputation and distribution companies should be positivelycorrelated, and only the existence of such relations in order to reducethe degree of information asymmetry between the enterprises andinvestors.Based on the above points, the reputation of Chinas venturecapital, the empirical analysis, the analysis showed that whether theventure of listed companies have significant differences in initial returns,but in terms of long-term results did not show different, but highreputation venture supported by the enterprise relative to thelow-reputation VC backed companies in initial returns and nosignificant difference, but has a better performance in the medium tolong term performance.Then lead to the weakening of Chinas venture capital reputationmechanism? This article that there are many reasons, market structureon adjustment problems, lack of regulatory securities issuance system toguide the Funds excessive participation in the market, the government,regulatory authorities, lack of supervision and regulatory over-thecoexistence of reasons.