| Currently, there is a prominent problem in the development of high-tech enterprises in China, such as financing difficulties and non-efficiency investment. Be knowledge-intensive and technology-intensive, high-tech enterprises accompanied by high-risk, high investment, long return time, therefore, under the principle of the loan security from the banks and other financing institutions, high-tech enterprises certainly have difficulties in obtaining development funds, which is the basic reason why Chinese high-tech enterprises are facing financing difficulties. Another reason is serious insufficient investment and non-efficient investment of slight over-investment which goes a lot against companies or shareholders’ value maximum target. While the emergence of venture capital enhances the vitality of micro-economic as well as promotes the development of high-tech industries, by shortening effects of traditional capital markets to inject fresh blood into high-tech enterprises, which greatly eases the financing problems, enhances enterprises innovative ability, improve enterprises management, and makes efficiently investment playing a huge role in promoting the development of high-tech enterprises.As a high-risk, high-yield and specialized portfolio, venture capital becomes more and more important in promoting worldwide economic and social development, especially it may solve finance problems and non-efficient investment, letting entrepreneurs and researchers keep eyes on associated with the rise of academic researches. Till now, from the literatures of the field in and aboard, the study is mainly about impact and benefit that venture capital makes for company unlisted, less involving in impact and benefit for company after its listing. It can be attributed to that people usually simple assume venture capital will quickly exit the stock market after issuing initial IPO. However, as China’s special economic develops, many venture capital shareholders still do not quit the market after having been listing company for many years because either stock circulation is sucked due to capital market imperfection, the reform of the shareholder structure or other reasons, or shareholders still expect higher yields by continuing to float. As China’s venture capital is immature and exits stock market difficultly, the essay studies its impact and benefit for high-tech enterprises listed under Chinese characteristics, which can contribute to a comprehensive understanding of the venture capital’s impact on investment company, thereby complementing venture capital theory. In addition, the essay focuses on analyzing listed high-tech enterprises, and discuss if venture capital can figure out problems in high-tech enterprises.High-tech enterprises play an important role in China’s economic development and industrial structure optimization and upgrading, it is why the essay should study if venture capital is able to solve its bottlenecks, that is, financing difficulty and inefficient investment. The essay analyzes venture capital’s impact on listed high-tech enterprises by two aspects, on one hand, the listed high-tech enterprises often face with inadequate investment. For example, due to asymmetric information, managers are reluctant to choose external financing, leading to lack of investment. In this situation, if China’s venture capital institutions can help the listed high-tech enterprise to solve the problem of information asymmetry, in order to alleviate the non-efficiency investment? On the other hand, if venture capital institutions can reduce the shortage of internal cash and non-efficient investment for listed high-tech enterprises, in which ways it can affect listed high-tech enterprises’ financing, and whether from debt financing or equity financing? To solve these problems, the essay collects40venture capital firms and244listed high-tech enterprise in China in2002to2011as an empirical test sample, attempting to display venture capital’s impact and benefit on high-tech enterprises and to come up with constructive suggestions to improve China’s financial markets as well as the development of high-tech enterprises. At the same time, the essay has important reference value for high-tech enterprises to understand in deep venture capital’s function and to grasp venture capital funds operation, what’s more, providing a theoretical base for venture capital institutions to better carry out investment plans on high-tech enterprises.Having read relevant literatures, the essay studies by theoretical and empirical aspects in detail as below: First, it discusses the reason to study this topic that venture capital’s impact and benefit on high-tech enterprises in China. In this part, internal and external literatures on this topic are reviewed and clearly listed, on the basis of summing up previous views, combined with the current high technology and venture capital, the topic is came up with.Second, theoretical analysis is discussed including non-efficient investment theory, especially insufficient investment theory, and financing theory. And it also analyzes venture capital’s impact on listed high-tech enterprises’ investment behavior and financing behavior.Third, empirical analysis is discussed including sample and data collection and establishment of the model. Initially use listed company in2002to2011as data sample, and establish three empirical model, afterwards, make an explanation on the empirical results.Although the analysis is by constraint of some statistics and limitation of institutional background, conclusion can be made as below by in-depth analysis of venture capital’s impact on listed high-tech enterprises’ investment and financing behavior:(1) There is a serious underinvestment in listed high-tech enterprises in China, while overinvestment on free cash flow shortage investment relatively is not that serious. Because it is positive correlation between cash flow shortage and underinvestment, inadequate investment in listed high-tech enterprises is likely to be caused due to a shortage of cash flow.(2) Venture capital affects listed high-tech enterprises’ inefficient investment. Firstly, internal cash shortage’s impact on inefficient investment in companies under venture capital background is less serious. Secondly, venture capital institutions can alleviate the inefficient investment. In addition, state-owned shares also ease listed high-tech enterprises’ inefficient investment.(3) Venture capital can help listed high-tech enterprises to get access to funds through various financing channels, to some extent alleviate efficient investment. Specifically, involving in venture capital institutions, listed high-tech enterprises can get more short-term interest-bearing debt financing and debt financing long-term coupon bonds, also can get more equity financing.The conclusions of the essay plays a practical role, in particular, it in some degree give guides on direction of the development of China’s high-tech enterprises and venture capital, including:First, currently domestic and international research rarely involves empirical studies of the relationship of venture capital and high-tech enterprises, less theoretical discussion on venture capital’s impact on listed enterprises. The essay studies in the beginning of venture capital and high-tech enterprises, with empirical analysis of venture capital’s impact on listed high-tech enterprise, as a preliminary attempt, which makes a difference.Second, based on empirical studies there is serious inefficient investment in high-tech enterprises. As high-tech enterprises play an important role in China’s economic development and optimization of industrial structure upgrade, the non-efficiency phenomenon due to insufficient investment must affect its development. Venture capital can improve the financing environment, the essay empirically prove that venture capital has help on insufficient investment to have access to debt financing and equity financing. However, high-tech enterprises are the demanders of money, but venture capital institutions are suppliers of money. To successfully obtain venture capital, high-tech enterprises should make sure that the hardware and software conditions comply with the requirements of venture capital, as well as that government should provide necessary support.At last, by analyzing financing channel, venture capital affects a lot on debt financing and equity financing, that is, venture capital enhances listed high-tech enterprises’financing ability. But compared to equity financing and adjusted equity financing, venture capital has limit access to attract external investors, which also reflects that venture capital is in imperfect development and it needs further escalation, all of which should be paid more attention by the government and the company’s management. |
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