Research On The Impact Of Risk Capital On The Investment Behavior Of Listed Companies

Recently,the continuous improvement of the capital market has promoted the further development of listed companies in China,but there are still some inefficient investment behaviors as underinvestment,overinvestment and so on.The risk investment in China has been developing for nearly 30 years with remarkable performance being made and rich experience being accumulated.In recent years,with the policies being made by the government to support risk investment,the corresponding institutions have been set up in large scale.So the issue that whether the participation of risk investment institutions can effectively alleviate the inefficient investment of listed companies or not has aroused the concern of people.With the above issue as the starting point,this paper firstly introduces the related concepts of risk investment and inefficient investment.Secondly,it carries out research on the principal-agent theory and information asymmetry theory and verifies overinvestment and underinvestment based on the above theories.Moreover,it also analyzes the present situation of investment behaviors and the impact of risk investament on the behavior.Thirdly,it puts forward the relevant hypotheses for the research and carries out empirical analysis by using the Gem data in China for the past three years.In this way,it makes further investigation on the issue that whether there is a positive correlation between free cash flow and overinvestment and whether the participation of risk investment institutions will affect the correlation;whether there is a positive correlation between the shortage of cash and underinvestment and whether the participation of risk investment institutions will affect the correlation;the results show that the overinvestment is more likely to generate in companies with adequate free cash flow,however,the participation of risk investment institutions will ease the relationship between them;underinvestment is more likely to generate in companies with inadequate free cash flow,however,the participation of risk investment institutions will ease the relationship between them and reduce the behavior of underinvestment.The paper makes empirical analysis by using data and proves that the risk investment has good effect on reducing the inefficient investment.Finally,the paper puts forward some suggestions on policies from two aspects of proposals for macro development and strategies for micro development of enterprises.