Research On The Effect Of Introducing Venture Capital Into Small And Medium - Sized Communication Equipment Manufacturing Enterprises

Since the reform and opening up, China’s communications equipment manufacturing industry has developed rapidly, and made the tremendous contributions to creating the wealth of national economy and solving the problem of social labor employment. However, because China’s current market system is not perfect and the weakness of private enterprises, the financing problem is always serious for the development of small and medium-sized communications equipment manufacturing enterprises. Although venture capital appeared relatively late in Chinese, it developed quickly. As a new financing way venture capital provides an opportunity for the development of the small and medium-sized communications equipment manufacturing enterprises. At present, scholars generally believe that venture capital not only provide funds for enterprises but also provide value-added services for enterprises. So in the tech industry such as communications equipment manufacturing industry, venture capital is expected to improve financing, the corporate governance and multiple expectations by enterprises and managers.In this paper, we take COSHIP ELECTRONICS to study the impact of venture capital on the corporate governance and performance evaluation of small and medium-sized communications equipment manufacturing enterprises, and analyze the mechanism further. In this paper, the results showed that: venture capital can not only change the enterprise ownership structure, the structure of the board of supervisors, the structure of boards but also can change the capital of board in enterprises to improve the operational efficiency of the board greatly. The enterprises can improve corporate governance through the rational allocation of resources. We also further found that the influence of enterprises introducing venture capital on corporate governance is not temporary. It will have a long-term effect on the core competitiveness of the tech enterprises such as communications equipment manufacturing industry. Based on the research results, although we think that the venture capital is a "double-edged sword", venture capital can have a long-term effect on the enterprises through being combined with the enterprise’s own situation well and the rational allocation of resources. At the end of this paper, we give the relevant policy suggestions according to the actual situation in our country. It will have some meaningful implications for the developing small and medium-sized communications equipment manufacturing enterprises on how to introduce venture capital...