Venture Capital Share Holding,Intellectual Property Environment And Corporate R&D Performance

Venture capital institutions play an important role in the growth and development of high-technology companies. For one thing, venture capital institutions provide equity investments during the critical growth period of high-technology companies, driving their development. For another, they offer diverse value-added services, help high-technology firms with accurate strategic goals, resources management, operating efficiency and finally the growth of enterprise value. Recently, it becomes more and more popular to study the relationship between venture capital institutions stock holdings and the performance of researching and development of firms among academic researches.Under such circumstance, this research picks all the public firms in the Growth Enterprise Market and SMSE stock market samples to explore the relationship between venture capital institutions stock holdings and the performance of researching and development of firms through researching on venture capital institutions stock holding proportions, board of directors appointment and joint investment. Meanwhile, this paper incorporates local level of intellectual property protection and commercial transformation rate of technology to examine the moderating effect of institutional environment on the relationship between VC stock holdings and performance of R&D. Our key finding is that enterprises with VC as shareholder enjoy higher performance on R&D, which is positive correlated with shareholding rate of VC. Besides, board of director appointment is also a factor positively associated with performance of R&D. And the two moderating factors mentioned above are proven to be positive moderators on the R&D performance effect of VC share holdings. At last, this paper conducted Robustness test on the research results.