A Theoretical And Empirical Study Of Monetary Policy Tightening,Venture Capital And Financing Constraints Of Enterprise Sensitivity

Venture capital is the form of equity investments in companies involved in the company’s management, and ultimately to obtain long-term capital gains of specialized investment companies through the transfer of shares. Compared to other financial intermediaries, venture capital companies not only provide funds needed for development, will be actively involved in investment management and corporate governance. In recent years, venture capital has become increasingly prominent role in promoting the development of enterprises, many scholars have attributed the economic success of venture capital, research also will rise. Research in this area has focused on exploring the role of venture investment in unlisted companies stage, and limited study did not reach the same conclusion.So what impact the venture capital market in China for business? This paper reviews the basis of domestic and foreign literature on the use of credit rationing theory and principal-agent theory, the investment cash flow sensitivity model, whether Venture Capital Enterprises effect will ease financing constraints? And based on this, consider the impact of the macroeconomic effects of environmental factors on the risk of investment, specifically, at the time of tightening monetary policy, external potential providers of finance for enterprises demanding higher quality, then venture to ease corporate financing whether the effect will be more significant? This paper focuses on these two issues studied.This paper selects 2005-2014 Shenzhen small board listed company data, collected by hand and whether the venture capital holdings data by constructing investment cash flow sensitivity Euler equation model using the estimation method and GMM generalized matrix on the relationship between investment and enterprise risk financing were quantitatively analyzed. We find that venture capital can ease financing constraints, but the effect is not always obvious only when monetary policy tightening, venture capital effect was significant statistical significance. Venture Capital and immediately relieve the spillover effects of financial constraints, the spillover effect was found to ease financing constraints of venture capital and governance effects can venture itself generate synergies.Compared with the existing literature, we find "certification effect" and "supervision" effect on the risk of investment in China’s capital market does not always have a statistically significant only when the tightening of monetary policy, the effects of venture capital was able to highlight, this study provides a new explanation for the theory of positive and negative aspects of venture capital, in order to understand the risks of investment behavior in China’s capital market provides a new perspective on performance. And the paper also found that when monetary policy tightening, venture capital alleviate the spillover effects of financial constraints and its own governance effect can produce positive synergies, not only provide indirect evidence for the hypothesis of this paper, and in order to further understand the effects of venture capital provided more empirical results.