Study On The Influence Of Venture Capital Investment On The Performance Of Listed SMSE Enterprises In China

Venture capital investment as one manner of dealing with the financing problemsoriginated in the1940s and50s in America, and it was invented by some investorswho were desirous to making a high risk for a high return. It formally occurred inChina in the1980s. Therefore the investment model in China was less mature thanthat in foreign countries. However, it is so difficult to study in China. Althoughventure capital investment can deal with many financing problems which exist inmany companies as one means of fund-raising, the influence on the performance oflisted SMSE enterprises can be easily neglected.In China, researchers did many studies and most of the studies on this subjectfocus on the theoretical research. They all admitted that investors can help doingsupervision and management on enterprise operation. However they did a fewempirical studies. Through the study on venture capital investment and the enterpriseperformance, a safe conclusion can be drawn. Venture capital investment can not onlyplay a role in the company capital, but also impact on the management. This paperaims to choose some enterprises to test the venture capital investment effectiveness onthe listed SMSE enterprises. The method is empirical analysis.Firstly, the paper attempts a definition of venture capital investment, and theninfluences are concluded. This part, three aspects listed below will be talked about:enterprise management, enterprise capital structure and financial target.Then, this paper selects78companies though empirical analysis from SMSEenterprises listed from January1,2010to December31,2010, and divides them intotwo groups according to whether they have venture capital investment. This thesisuses financial indicators to analyze enterprise performance. The thesis measures theenterprise performance of listed SMSE enterprises from four aspects, includingcorporate profitability, solvency, operation and development capacity, thus it will bean objective and overall measurement of enterprise performance. It uses thedifferences in element method to analysis the sample enterprise from four aspectswhich listed above. Then this paper uses a significance test to tell the differencesthrough the T test and Mann-Whitney Test. At last a test result comes out to analysis whether the influences exist.Last but not least, the conclusion and some suggestions can be given on the baseof the empirical analysis. Other views can also be given in order to make the contentsand the conclusion perfected and improved.