Research On The Venture Capital Influence Of The Investment Efficiency Behavior Of Listed Companies

In recent years, with the rapid development of Chinese capital market, theperformance of listed companies in our country is becoming more and more active,but inefficient investment behavior is serious, mainly for investment shortage andexcess. In the two rights separation of China’s listed companies, because of thewidespread principal-agent conflict, makes the investment decision-making power ofa company’s senior management don’t want to spit out cash in the form of paydividends distributed to shareholders at the time of making investment decisions, inorder to maintain its own position and to maximize its own interests, often waste thecompany’s free cash flow in investment in net present value is zero or even negativeinvestment projects, which leads to excessive investment. And listed companies in ourcountry there is the problem of asymmetric information, when the company face thegood investment opportunities and shortage of internal financing, informationasymmetry makes the company’s external financing cost is too high, by financingconstraints, causing internal cash flow shortage, the company was forced to give upthe net present value greater than zero investment projects, which leads tounderinvestment. Based on this, we first theoretically studied by principal-agentconflicts, information asymmetry, financing constraints, and the misuse of free cashflow and other factors caused the inefficient investment behavior of listed companies.Then introduced the concept of risk investment, empirically analyzed the virtualvariables in the regression model contains risk investment, in order to study theimpact mechanism and effect of venture capital on inefficient investment behavior ofthe listed companies, the results found that venture capital to join not only cansuppress the listed companies excessive investment of free cash flow, but also canalleviate the problem of insufficient investment caused by a shortage of cash flow in acertain extent. Further empirical research also found that different characteristics ofrisk investment institutions can have the effect of inhibition of free cash flow toomuch investment, but to significantly improve the external financing environment,financing constraints problem, ease the cash shortage of underinvestment, only highstake, high reputation, joint investment or non-state background risk investmentinstitutions will be able to do it. To sum up, our country’s listed companies can takeadvantage of venture capital institutions supervision function, reputation resourcesand financing relationship network to solve the agency problem and the problem ofasymmetric information, and then promote the corporate investment behaviorstandardization and rationalization. At the end of the article, according to the resultsof this study also put forward some policy suggestions, hope to be able to make a littlecontribution to the improvement of investment efficiency of listed companies in ourcountry.