The Empirical Study On Relationship Between Venture Capital And Enterprises Performance From Listed Companies Of Gem

Venture capital has long been considered an important force for promoting innovation and development of high-tech enterprises, and promote the rapid transformation of scientific and technological achievements. With the GEM market opening, China’s capital market system gradually improve, the number and total amount of venture capital investment has emerged explosive growth. As an equity investment, venture capital providing both financial support and non-capital value-added services can promote the possibility of small high-tech entrepreneurship and technological innovation, and therefore, influence of venture capital on enterprise performance has a very important significance. This article draws on domestic and foreign scholars’ related work about the study on the relationship between venture capital and corporate performance to analyze and research this subject of GEM listed companies in China.First of all, define the concept of venture capital and corporate performance and investigate the correlation between these two variables using the property rights theory, authentication supervision theory, reputation effect theory, and portfolio theory, and lay the foundation for empirical research.Then, this paper proposes the research hypotheses on the basis of prior theoretical analysis,build multiple regression model and define every factor which the model need. Finally, use the empirical data of GEM listed companies from 2009 to 2013 through descriptive statistics and multivariate regression, in order to verify the hypothesis and draw the empirical conclusion.The empirical results found that venture capital involvement will enhance corporate performance, a high proportion of venture capital holdings is conducive to enhancing enterprise performance, the high reputation of venture capital institution is able to enhance corporate performance, the performance of state-owned venture capital background shareholding enterprises in general is lower than the non-state-owned venture capitalist shareholding enterprises. Joint venture investment behavior does not enhance corporate performance as expected, although the empirical results are somewhat insignificant, but it to a certain extent can say that there is a certain bias between the practical implications of joint venture investment behavior and the theory analysis. On the basis of empirical research findings, this paper puts forward some suggestions on promoting the venture capital industry and its impact on the role of business from from different angles.