| Venture Capital (VC for short)originated in the United States and in a broad sense, between late19th century and the beginning of the20th century in the U.S, iron&steel, railway and other industries have miniature of VC. In narrow sense, it originated in the1930s, by virtue of high-tech industries, showed a momentum of vigorous development with the advent of computer networks. Since World War II, especially in the1980s and1990s VC in the United States has developed rapidly, from which Japan and UK and other countries have learned a lot.VC, as a new way of investing and financing, shows different characteristics from traditional equity and debt investment, for it’s a kind of high-risk, high-potential yield investment, and is a combination of venture capitalists knowledge, ability and experience in the investment business operations, which can promote the development of entrepreneurial enterprises.VC is mainly involved in high-tech industries. The scale of operation of the high-tech enterprises is usually small, and has a high input and high risk. High risk of high-tech enterprises are mainly reflected in the following aspects: technological innovation risk, management risk, strategic risk, financial risk and market risk. Taking into account other factors such as risk-averse, banks and other financial institutions often do not provide loans to such enterprises. The emergence of VC, undoubtedly provides an effective way to solve the problem of financing of high-tech enterprises. Venture capital investment to high-tech enterprises, is conducive to high-tech industrial development.VC has a great impetus to the development of the invested enterprises, It is not only to provide financial support for venture enterprises but also provides internal management and external marketing and value-added services such as business to play a regulatory role,and provides strategic planning, interpersonal communication, social resources networks, and other aspects of the follow-up management services for start-ups, provides professional advisory services and regulatory intervention risk enterprise operation and management decision-making, and thus effectively improves enterprise management level, and promotes the development and growth of SMEs.Compared to other countries, China’s venture capital industry started late. In1998a proposal on the development of China’s venture capital business set off a boom in venture capital in China. With China’s rapid economic development, a large number of of innovative high-tech SMEs are emerging rapidly; despite growing,shortage of funds has always been the bottleneck of their development, so VC is required to provide financial and consulting services, in particular the introduction of the small plates in2004, and the GEM in2009, have provided a good exit channels for venture capital and VC scale is growing. VC is ushering in a golden period of development.China’s venture capital industry has had more than ten years of development since the1990s, It is playing an increasingly important role in the development of high-tech SMEs, and many venture capital firms have begun to widely participate in the projects of companies listed. According to official statistics, China has listed small and medium-sized enterprises, of which about68%are helped by VC. While they coach the SMEs’listing, they also reap. But at the same time a number of venture capital involved small and medium-sized listed companies in their market for some time often face performance-deterioration events. Therefore, there are many disputable issues in the theory and practice community as for risk investment institutions’s role in SMEs, venture capital and SME governance, risk investment of time and costs and benefits, as well as venture capital firms and their share-holding enterprise growth.We first reviewed the research results on risk investment at home and abroad. Whether access to venture capital, we selected enterprises in Shanghai and Shenzhen as the study sample.The authors analyzes the relationship between venture capital and growth of SMEs using an empirical study and explore a direct relationship between venture capital and growth of listed companies.Depth study of this issue will help us study the status quo of China’s venture capital industry. This also helps to guide and regulate the operation and development of the venture capital firms. It’s also helpful to provide a theoretical basis for the economic transformation of China’s Next.The full text is organized as follows:Chapter I:Introduction This section introduces the research background and significance, the research methods, content, after which it puts forward its innovation.Chapter Ⅱ:literature review, synthesis and evaluation of relevant literature on venture capital and corporate growth.Chapter Ⅲ:This section introduces the concept and theoretical basis of venture capital and corporate growth, which provides a theoretical basis for the study of venture capital and growth of enterprises.This section defines the concept of venture capital, small and medium-sized enterprises, growth and sustainable growth.This article then describes some representative theories about Venture capital and corporate growth.Finally, the research hypotheses is proposed to show the venture capital’s influence on the enterprise growth.Chapter Ⅳ:Data description of empirical research and variable descriptive statistics.Firstly, the sample data sources are introduced.This article describes how to select the sample data and reason of that. And then we introduce the variable selection.Principal component analysis method is used to calculate the score G about the growth of enterprises.Finally, the variables are statistically analyzed.Chapter Ⅴ:Risk investment impact analysis on enterprise sustainable growth.We study the risk investment’influence on the improvement of corporate governance structure, senior management team construction and research&innovation capacity. Then we analyze the risk investment intervention’s influence on the invested enterprise sustainable growth from the following aspects which includes the first big shareholder’s shareholding proportion, general manager and chairman of both part-time situation, the independent directors proportion, senior executives shareholding proportion and the education level, the enterprise of scientific research innovation ability.Chapter VI:An empirical Study, empirical research model is set up in this part. Multiple regression analyze is used to verify the assumptions put forward by the former. And the empirical results are analyzed. Chapter Ⅶ:Conclusions, recommendations and research limitations.This section summarizes the conclusions of this study, make policy recommendations, and pointed out the inadequacies of the article research, recommendations are given for further study.The contribution of this article is as follows:In recent years, venture capital in China has been more rapid with substantial increase in the size of the entire capital of the venture capital industry, and more complete venture capital related laws, regulations and more healthier capital market environment. On empirical research data, the paper selected as the sample enterprises in the issue of A shares in Shanghai and Shenzhen listed companies which comply with the conditions of SMEs, rather than only a listed plate, For example:small plates, the GEM, and the article uses the data of listed companies in recent years as the sample data.The paper founded a set of small and medium-sized listed companies growth comprehensive evaluation index system and a comprehensive evaluation of the application of principal component analysis on the growth of small and medium-sized listed companies to calculate the score and ranking of the growth of small and medium-sized listed companies. The return on net assets, main business revenue growth, earnings per share and other single financial indicators to reflect the growth conditions, but they can not fully reflect the efficiency of business management and can easily lead to the conclusion inconsistent or even the opposite. Some scholars use the comprehensive evaluation method to measure the growth of listed companies, the purpose of comprehensive scoring method, the weights of various financial indicators are set in advance based on experience or subjective judgments, the existence of human empowerment and indicators the nature of the defects. We used principal component analysis to overcome the limitations of scholars in the past to choose a single financial indicators ot simple weighted composite score to measure the company’s growth, which can more objectively reflects the growth of small and medium-sized listed companies. This paper also uses a paired test, correlation analysis and regression analysis and other methods as a combination of empirical research.At present, the majority of domestic research on venture capital start from the theoretical analysis to impact on the invested company’s growth. This article is based on the basis of theoretical analysis, and makes empirical research to verify whether the involvement of venture capital has positive effect on the improvement of the corporate governance structure, the construction of the senior management team as well as research and innovation capabilities, and thus the risk of investment and small and medium-sized the correlation between the sustainable growth of enterprises to conduct a comprehensive study. |
PDF Full Text Request