The Research Of The Influence Of The Government’s Guiding Venture Capital Fund On Venture Capital

Positive externalities and market information asymmetry problem have seriouslyhindered the development of venture capital, how to overcome this problem hasdrawn wide attention from academic circles, government and business circles. TheGuidelines of the Standard Establishment and Operation of the Government’s GuidingVenture Capital Fund issued in2008.Since then, many governments have set up thiskind of capital to promote the local venture capital.Based on the background, this paper focuses on the effect of government’sguiding venture fund to venture capital market. firstly,the paper derives from amathematical and empirical perspective to demonstrate the impact of governmentguidance funds to venture capital market。 through the mathematical model,government’s guiding venture fund can really solve the problem of the failure ofthe venture capital market; then the paper does panel regression using the relevantdata of China’s31provinces data from2000to2012on the national、eastern、centraland western autonomous region and The regression results show governmentguidance funds has a significant impact on venture capital market, indicating thatgovernment guidance funds can promote the development of venture investmentmarket, which has proved the theoretical analysis. Besides, the paper also usesQuantile Regression Model to investigate the impact of government’s guiding venturefund on the venture capital market under different distribution conditions. The resultshows a "inverted U" feature’In addition, in order to better play the role of government guidance funds, thepaper also presents the characteristics of the current government guidance funds usingstatistical methods. Finally, the paper puts forward proposals based on the problems.