A Study Of How Venture Capital Affects R&D Investment

In recent years, with the implementation of revitalizing the country through science and technology, enterprises’ R&D investments are increasing in our country. But compared to developed economies, there still lives a large gap. Management and the financing ability of enterprise is the important factors that affect enterprise R&D input level. Except providing funds, can venture capital help promote R&D spending by improving the corporate governance? This article discusses how venture capital with the introduction of corporate governance influence the enterprise’s R&D input.This paper theoretically analyzes how corporate governance’s characteristics influence the corporate R&D input. Then connect risk investment, corporate governance and corporate R&D investment. In the aspects of empirical, this paper selects 307 companies from Shenzhen Stock Exchange as research samples, adopting multiple regression and hierarchical regulation regression method to analysis the relationship between risk investment, corporate governance and corporate R&D investment. Through independent sample t-test analysis found that enterprises’ corporate governance with risk investment participating performance significantly better than that with not; through regression analysis found that the participation of venture capital have significant positive influence on R&D strength, corporate governance and the R&D strength also have significant positive correlation; the result of hierarchical regulation regression show that the corporate governance have significant positive adjustment effect between the relationship of venture capital participation and R&D strength. All of these illustrate that by participating corporate governance, venture capital can promote the increase of corporate R&D input. The government should provide conditions to relevant talents skilled in risk investment, and risk investment institutions should strengthen their own capabilities, enterprises should improve the level of corporate governance in order to enhance enterprise competitiveness.