Venture Capital Firms’Network And Investment Efficiency Of Listed Companies

In recent years, with the development of venture capital in the global economy, many researches have focus on venture capital in capital market As a result of the existence of agency problems and asymmetric information problem, listed companies in China will be overinvestment or underinvestment The relationship between the degree of overinvestment and the free cash flow can reflect the seriousness of agency problems of listed companies, the relationship between the degree of underinvestment and the short cash flow can reflect the seriousness of asymmetric information problem.Currently, there are two views of the effectiveness of the theoretical risk of investment The first view confirmed the positive impact of venture capital for businesses, that is "Certification theory" and "Supervision Theory"; the second view consider that venture capital will have a negative influence on listed companies, that is "By-name theory" and "adverse selection theory". Whether venture capital will bring positive effect or negative effect to listed companies, academia does not have a unified conclusion,This article selects all company listed on a-share mainboard, middle and small board and growth enterprises board during January1,2001and December31,2012, to find out the relationship between venture capital firms’ network and investment efficiency of listed companies. The empirical results show that the free cash flow and the degree of overinvestment is of positive correlation, and the more central position in the network, the venture capital will exacerbate overinvestment of the listed companies; the short cash flow and the degree of underinvestment is of positive correlation, and the more central position in the network, the venture capital will alleviate underinvestment of the listed companies. In general, the more central position the venture capital in the network, can hav effectively inhibit underinvestment, but have no inhibitory effect on overinvestment...