The Research On The Relationship Of VC-Corporate Governance,financial Flexibility And Firm Value

With the rapid development of VC in China,scholars begin to pay attention to the role of VC in supporting the development of Newly established enterprises.different from the traditional financing mode,VC can not only provide financial support for the enterprises,but also participate in the invested enterprise corporate governance activities.And VC can use the management experience,professional analysis,relationship resources and other non capital value-added services to give enterprises more and more favor.In addition,due to the recent increase in capital market uncertainty,compared to large enterprises,SMEs face greater financing constraints,higher risk of bankruptcy.In order to prevent the impact of uncertainty,seize the investment opportunities,enterprises tend to reserve a certain Financial flexibility.When VC participate in the corporate governance of the investee company,through the appropriate way to carry out information exchange,relationship resources and strategy development,which not only affect the value of the enterprise investment enterprises,but also affect the financial flexibility of its reserves.Scholars from different angles to study the characteristics of VC related to the corporate governance and business performance,and the internal corporate governance has the influence on the financial flexibility of the enterprise reserves.VC is the external supervision mechanism of the enterprise,the corporate governance activities is the internal mechanism of the enterprise,but few studies from VC and investment companies corporate governance coupling coordination point of view of its impact on corporate value,and the role of the enterprise's financial flexibility in the relationship between VC and Corporate Governance coupling and Corporation value.Therefore,this paper attempts to research the relationship between VC-corporate governance coupling coordination,financial flexibility and enterprise value from the VC-corporate governance model.Firstly,this paper uses the combination of normative analysis and empirical analysis.On the basis of literature review,agency theory,information asymmetry theory,free cash flow theory and institutional shareholders' activism theory,and the analysis of the interrelationship between two "system",VC and the corporate governance of the invested enterprises,this paper constructs the relevant characteristics of venture capital and corporate governance,and usesthe coupling model to calculate the two "systems" Coordination degree.Secondly,taking the listed companies on the GEM as the sample,based on Coordination degree,financial flexibility measured by GEM financial index and corporate value GEM financial index,This paper uses the method of linear regression to empirically test the relationship of VC and corporate governance,financial flexibility and enterprise value.Taking the GEM listed companies in 2015 as a sample,and using stata12.0 software perform regression analysis,then this paper draw the following conclusions:(1)There is a positive correlation between coordination degree and enterprise value.VC-Corporate Governance Coupling coordination is better,the more conducive to enhance corporate value.The relationship between VC and corporate governance is positively correlated with the value of the firm.The "supervision hypothesis" of venture capital is verified.(2)there is a positive correlation between VC-Corporate Governance Coupling coordination and financial flexibility.that is,the better the coordination degree of VC and the corporate governance of the invested enterprise,the more financial flexibility of the reserve.VC can increase the financial flexibility of corporate reserves from two aspects of surplus debt capacity and corporate excess cash holdings,but more significant is to enhance the cash flexibility.(3)The financial flexibility of corporate reserve plays a part of the role of VC-Corporate Governance Coupling Coordination and enterprise value.When the degree of VC-Corporate Governance Coupling Coordination is high,VC is active to provide their capital support,professional management knowledge,technical support,and enterprise reserves of certain financial flexibility at the same time,increasing the financial flexibility of venture capital reserves,especially cash flexibility,so it is easy to seize high-yield investment opportunities to enhance corporate value.Finally,this paper puts forward relevant policy suggestions based on the results of empirical analysis and looks forward to the future research direction.