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The Effect Of Venture Investment On The Performance Of Small And Medium-sized Enterprises

Posted on:2017-01-13Degree:MasterType:Thesis
Country:ChinaCandidate:J X GuoFull Text:PDF
GTID:2309330482999188Subject:Business management
Abstract/Summary:PDF Full Text Request
Venture capital was born in the United States and has developed rapidly since the1940 s. High yields and high risks are remarkable characteristics of venture capital. Most small and medium-sized enterprises that have the development potential cannot get the financial support through traditional financing channels, and tend to seek the help of venture capital. While providing capital to small and medium-sized enterprises, venture capital also provides the corresponding strategic management, institutional construction,market development and other value-added services, which provides assistance for enterprise development, and brings huge benefits to venture capital. High yields are always accompanied by high risks, and during most small and medium-sized enterprises that obtain venture capital, only about 5% ~ 20% of the investment succeeds. Under the background of the global economic recovery and development of China’s economic transformation, small and medium-sized enterprises need to look for new development patterns, and it is an important direction for venture capital to participate in enterprise management and help enterprises’ transformation development. The paper fully studies that under the background of China, venture capital’s influence on the performance of small and medium-sized enterprises has important theoretical and practical significance.In previous studies, venture capital and the performance of small and medium-sized enterprises are bidirectionally influenced to each other, in which venture capital is benefit to the improvement of enterprises’ performance, while small and medium-sized enterprises with good performance also have appeal to venture capital.Using the new empirical method, the paper separately studies the influence of venture capital on the performance of small and medium-sized enterprises, so as to accurately understand the effect of venture capital, and thus provide support for enterprise decision-making. In terms of study contents, the paper systematically studies the venture capital participation, venture capital with political background, venture capital joint participation and the influence of renowned venture capital on enterprises’ performance, and comprehensively investigates the effect of venture capital. On the data selection, the paper selects all the manufacturing companies listed on SME board of Shenzhen Stock Exchange as samples; the time is from 2004 to 2014 for ten years, and we obtain valid samples from 2012 enterprises; detailed data ensures the reliability of the paper’s empirical results. On the selection of empirical methods, the paper uses thepropensity score matching method which is popular in recent years. The method can eliminate the appeal that small and medium-sized enterprise with good performance produce to venture capital institutions, uniaxially analyze the influence of venture capital on the performance of small and medium-sized enterprises, and make further efforts for the accurate understanding of venture capital’s effect.The study results show that firstly, venture capital participation, venture capital joint participation and renowned venture capital institutions have the positive influence on the performance of small and medium-sized enterprises; secondly, the relation between venture capital with political background and the performance of small and medium-sized enterprises is not significant. Based on the results of empirical study, the paper puts forward the corresponding countermeasures and suggestions regarding whether small and medium-sized enterprise should decide to choose venture capital and choose what kind of venture capital institution, so as to promote the performance level of small and medium-sized enterprises.
Keywords/Search Tags:venture capital, the performance of small and medium-sized enterprises, financial performance, the propensity score matching
PDF Full Text Request
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