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The Empirical Study On The Influence Of Venture Capital Investment On Performance Variation Of NEEQ Information Industry Companies Before And After Being Listed

Posted on:2018-01-06Degree:MasterType:Thesis
Country:ChinaCandidate:H C WeiFull Text:PDF
GTID:2359330515986756Subject:Finance
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After over 30 years of development in our country, venture capital plays an increasingly important role in capital market. For the information industry, venture capital is critical to expanding the scale of corporate equity financing and driving industrial upgrade. However, based on the experiences of other capital markets, different research conclusions have been reached on whether venture capital is positive or not for a company,especially one which aims to go public. Though NEEQ has been integral to the multi-layer capital market being built these years in China, there is few researches on the comparison between the performances of VC-involved companies and no-VC-involved companies before and after being listed. This article, therefore, is aimed at enriching research findings of such comparison by using different research methods and information industry companies listed on NEEQ as research samples.This article selects information industry companies listed on NEEQ in 2014 as research objects and uses change of return on equity (?ROE) and change of gross profit rate (?GPR) as explained variables to measure the degree of performance variation of sample companies. Besides, it observes whether venture capital (VC) will have significant influences on the performances of sample companies before and after being listed through descriptive statistics, correlation coefficient test and cross section multi-variable regression.Furthermore, the article selects joint investment (NVC) as explaining variables to further analyze the difference of performance variation of sample companies generated from venture capital.The research results indicate that venture capital might exert negative influences on companies. Further research discovers that the higher percentage of venture capital in a company’s shareholder structure, and the more joint investments of venture capital, the larger negative effect on performance variation of sample companies. If venture capital institutions hold more shares of invested companies, they are more likely to manipulate financial reports, which could lead to poor company performance. Similarly, when more venture capital institutions are involved, the decision-making process of shareholders’committee will become less efficient, resulting in worse performance too.This article mainly clarifies specific influences of venture capital on the performance variation of information industry companies on NEEQ before and after being listed. It especially deeply explores the direction and strength of the influences of characteristic of venture capital (joint investment NVC) on the performance variation of companies. This might enrich studies in the field of venture capital and performance research of information industry companies on NEEQ. Finally, the article provides effective policy proposals for NEEQ regulatory authorities, information industry enterprises and venture capital firms.
Keywords/Search Tags:Venture capital investment, NEEQ, Information industry, Performance variation
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