Research On The Participation Of Venture Capital In K’s Corporation Governance

Look around the world, venture capital is active everywhere. Venture capital plays an important role in accelerating the transformation of technological R & D advantage to the market competition advantage, boosting the scientific and technological innovation, promoting the development of knowledge economy and promoting the national economic growth. Venture capitalists for the significance of the company, has not only limited to give the funds needed to help businesses grow,but more by participating in corporate governance directly affect the company’s strategic planning and major decision-making etc., enhance the value of the company.Corporate governance as the focus of the power of the company, the level of its governance directly related to the company’s future survival and development. In recent years, the emergence of the global financial crisis, the public company financial fraud case risk events, tracing the source, we found there is a failure of corporate governance factors, also caused widespread concern in the academic circles. In the research on the perspective of venture capital has become a hot topic in recent years. However, the economy is complex and changeable. So the company is facing unprecedented opportunities and challenges today. Also makes the effect of venture capital on corporate governance research in the ascendant.China’s Growth Enterprises Market(GEM) Listing Corporation represents the emerging economic power of China. The mass innovation, entrepreneurship craze is surging, it is self-evident importance of the GEM market in the capital market. This paper aimed at the Shenzhen Stock Exchange GEM, focusing on K, by K as the concrete research object of in-depth analysis, through the investment risk to participate in the corporate governance effects of research and analysis, summed up the experience and puts forward some thoughts and suggestions on Optimization of corporate governance.From the overall structure, the article first on the domestic and foreign literature data, clear the text discussed the concept of venture capital, corporate governance,and pointed out the relevant theory of support research. After setting up the analysis frame, and lay a solid theoretical foundation, then a case study of K is carried out.The review process of risk investment institutions to invest in K company, risk investment institutions in the investment of K company ownership structure, "three" structure, incentive and constraint, value-added services, such as the system research,at the same time from boost IPO effect, implementation of the strategy, corporate performance three aspects of Comparative Company governance effect of multi angle analysis. Summarize the case experience, analyze the existing problems and put forward the solutions, to promote the healthy and rapid development of K by optimizing the venture investment and participating in the K corporate governance.Through the analysis of this paper, we can get the positive effects of venture capital investment on K, improving the ownership structure, improving the level of governance and performance, providing support for all kinds of resources and capabilities. K has been successful landing of the capital market to achieve the listing of the GEM. At the same time, because of its high quality theme concept has been sought after by investors in the market. But I also paid attention to in this process, is currently China’s capital market still in the development stage, the system and mechanism construction defects, on the investment risk to participate in corporate governance encouragement and supervision is not enough, on the dividend policy of risk investment institutions support is not enough; second, K limited to the state system bound in some areas of reform of the depth is not enough, the degree of marketization is slightly lacking; third is risk investment as a financial investor speculation by short-term behavior, the lack of long-term value investment philosophy. The optimize internal and external governance to solve the existing problems countermeasures: perfecting laws, regulations and policies, promoting the market construction; encourage investment risk, cultivate the institutional investors;deepen the reform of the company, taking into account the stakeholders;implementation of incentive mechanism, hiring professional managers. At the same time, as a former state-owned enterprise, K restructuring and development of the reform and development of the growth experience is worthy of analysis, can deepen the reform of state-owned enterprises to provide experience for reference, as a typical case.