Study On The Impact Of Venture Capital On The Sustainable Growth Of GEM Listed Companies

In 2014,the State Council issued the Guidance Opinion on Multi-measures and Efforts to Relieve the High Cost of Enterprise Financing.It requires the development of direct financing,relying on a multi-level capital market system,broadening investment financing channels,supporting small,medium-sized economic activities and various types of non-financial activities.Venture capital as a direct financing capital model in the multi-capital platform,with its capital investment and operating value-added services have been favored by the GEM listed companies,and as the most liquid capital,the most flexible investment,the most tolerant of the listed financial capital market,because of only one year venture capital company forbidden period the GEM indeed provides a convenient for venture capital.So,as a beneficiary of the GEM listed companies,when the venture capital to participate in business,the enterprise how to develop? In order to achieve sustained profitability and sustainable growth,SMEs need to pursue sustainable growth that matches the financial resources and business capabilities of enterprises.Therefore,the impact of venture capital as a direct financing on the sustainable growth of enterprises after entering the enterprise has become the source of this paper.This paper first reviews the concept and theoretical literature of venture capital and sustainable growth.It is the difference between the sustainable growth of GEM listed companies with venture capital and the listed companies without venture capital.Bold speculation that the different proportions of venture capital may have different effects on the sustainable growth of listed companies on the GEM.And then the necessary analysis of the sustainable growth of enterprises is to evaluate the classic Higgins sustainable growth rate index model,and for the particularity of Chinese listed companies to reconstruct its sustainable growth model evaluation system,selected GEM listed companies Sustainable development of quantitative indicators;and then from the market,strategic decision-making,technological innovation,ownership structure and governance structure the five dimensions to fully explain how the venture capital on the sustainable growth of GEM enterprises have an impact,and thus affect the sustainable growth of enterprises;Finally,through contrasting the listed companies without venture capital with the listed companies within it,the empirical analysis of the three levels that is the difference in the sustainable growth,the proportion of the venture capital does have different effects on the sustainable growth of the enterprise,and how the venture capital and other control variables affect the sustainable growth of the enterprise in different proportions,draws conclusions and suggestions on the quantitative development of venture capital and sustainable growth of the enterprises on the GEM.From the empirical results,firstly,the GEM enterprises with venture capital background through independent sample T test have higher sustainable growth average than the nonventure capital background,indicating the sustainable growth rate of venture capital enterprises with the overall trend towards high values.That is to say,compared with nonventure capital,investment of venture capital does play a role in the sustainable growth of enterprises.Secondly,through the one-way analysis of variance,the proportion of venture capital which are below 1% and 1%-10% interval have no significant difference to the GEM listed company sustainable growth;there is a significant difference between the proportion of venture capital below 10% and 10% above interval on GEM listed companies sustainable growth;10%-20% regions and more than 20% of the proportion of venture capital of enterprise do not exist significant differences to the sustainable growth of listed companies.it is concluded that the proportion of the interval group of 10% and 10% has different effect on the sustainable growth of the enterprise.Based on this,with 10% as a distinction,combining other control variables,according to the division of scale range,the two groups of data were analyzed for the third level by regression analysis,and comparative regression analysis results are not the same.When the proportion of venture capital is less than 10%,the proportion of venture capital is negatively correlated with the sustainable growth of the enterprise.At this time,the number of venture capital institutions and two duality in one are positively related to the sustainable growth of the enterprise.The proportion of the largest shareholder,the size of enterprises,the establishment of time and the proportion of technical staff with enterprises sustainable growth are all negative correlation.That is shown that for GEM listed companies,the investment of venture capital in low proportion level(less than 10%)cannot have a positive impact on the sustainable growth of enterprises,non-capital operating value-added services brought about by the venture capital party is conducive to enterprise sustainable growth,this point is reflected by positive correlation of the number of participating institutions of venture capital and enterprise sustainable growth;In addition,the corporate governance style of centralized form can make the enterprise run efficiently and improve the sustainable growth of enterprises in the start-up stage.Concentration of equity,excessive expansion of enterprises and excessive devotion to scientific and technological innovation are not conducive to sustainable growth of enterprises.In the case of more than 10%,the correlation between the proportion of venture capital and sustainable growth is positive,but not significant.The number of venture capital firms is positively correlated with the sustainable growth,and the correlation is significant which is more relevant than the regression coefficient below 10%.In addition,the size of enterprises,the proportion of technical staff for this time with the enterprises sustainable growth reflects a significant positive correlation,and the shareholding ratio of the largest shareholder and the establishment time is still a negative correlation with the sustainable growth,the board of two duality in one in more than 10% stage is still shown a negative correlation.That is shown that more than 10% of venture capital ratio stage,venture capital is conducive to the sustainable growth of enterprises,non-capital operating value-added services have a greater value on the sustainable growth of enterprises,at this stage of the enterprise whether it is scale expansion or increase technology investment has sustained profitability and sustainable growth for the enterprise,namely enterprises in the transition process from germination stage to growth stage,there are more demand for capital,labor and technology investment.The equity concentration still hinder sustainable growth of listed companies on GEM,the survival time and enterprise sustainable growth still have a significant negative correlation,that is,the longer the enterprise survives,the more difficult it is for the enterprise to maintain sustainable growth.The results show that the influence of different factors on the sustainable growth of enterprises is different in proportion,which is in line with qualitative research,and it has certain guiding significance for the GEM listed companies,venture capital investors and capital market regulators of the listed companies.