An Emprical Study On VCs,Corporate Governance And Corporate Performance

With the high development of GDP, China has become the world’s second largest economy, but there are still many problems which need to be solved quickly. The new China’s leader team has come into being, more active and comprehensive reforms are coming forward to turn our economy to a new way to achieve the sustainable development end. Put a strong stick with the VC industry, establish of a multi-level capital market, so as to promote the private economy which is vital for sustainable development. The private economy, especially the small and middle sized enterprises have a large risk exposure, which leads they are difficult to finance from lending institutions or high cost loan. But VCs have the high risk-return principle, they invest in these enterprises, so the problem of money has gone. And more, VCs may provide start-ups some soft power, create some added value, which some empirical data in other countries had confirmed that the VC-backed startups operated better.To have an insight to how the VCs have an impact on the startups, this paper has constructed a mediating effect test model and taken corporate governance as the mediating variable to analyze the relationship among the VCs, corporate governance and the operating results. This paper had selected193listed companies in2009-2012in the domestic GEM as a sample and analyzed relevant data, which the results indicated the VCs’investment had an obvious positive effect on corporate governance and operation performance, as to the mediation effect, the effect of the indicators ownership concentration and majority shareholding is not obvious, but the proportion of independent directors and equity incentives have some partial mediation effect.