Venture Capital And Corporate Performance

Different from the former studies, this paper explores the relationship between domestic VC and corporate performance from the perspectives of "excessive supervision" and "inadequate supervision" based on the monitoring hypothesis, which has strong theoretical and practical significances for the improvement and development of the domestic VC monitoring mechanism. Meanwhile, this is the paper’s perspective innovation.In addition, this paper uses panel datas to analyze, which is the method innovation of this paper. During the study process, this paper chooses the IT industry as the research object and derives the corporate composite performance indicators through the factor analysis. Based on this, this paper chooses three explanatory variables named "VC background or not","VC shareholding ratio" and "VC joint investment or not" and builds three panel data models to analyze the relationship between domestic VC and corporate performance, thus, drawing the following conclusions:(1) The VC’s monitoring mechanism exists in domestic VC institutions and VC-backed corporate, and the mechanism is beneficial to improve the VC-backed corporate performance.(2) Dunng the period of the point that the VC-backed corporate conducts IPO to the point that the VC institution withdraws the capital, the VC institution still offers the supervision and value-added services, i.e. the VC monitoring mechanism remains efficient during this period.(3) The VC shareholding ratio and corporate performance shows an inverted U-curve relationship. With the increasing VC shareholding ratio, the corporate performance increases and then decreases.(4) The collaborative management effect on the VC-backed corporate from VC joint investment is not obvious.