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Research On The Impact Of Venture Capital On Growth Enterprise Performance

Posted on:2019-07-25Degree:MasterType:Thesis
Country:ChinaCandidate:M Y DaiFull Text:PDF
GTID:2359330542993965Subject:Finance
Abstract/Summary:PDF Full Text Request
Venture investment refers to the investment of professional investment personnel in entrepreneurial enterprises.These enterprises generally have the characteristics of rapid development and great potential.After these enterprises mature slowly,they will give investors high investment returns.Entrepreneurial enterprises are in a state of just development,with weak capital strength and high demand for funds.At the same time,due to size and credit problems,it is difficult to obtain loans in banks.Venture capital is precisely for enterprises to solve this problem.At the same time,venture capital institutions will provide various types of support for entrepreneurial companies,such as technology,funds,etc.,in order to achieve better returns.This will promote the development of entrepreneurial enterprises.It can be seen that there is an inevitable relationship between venture capital and entrepreneurial enterprises.It is of great significance to study the impact of venture capital on the business performance of GEM companies.This paper draws on the research results of the relationship between venture capital and corporate performance both at home and abroad,and conducts theoretical analysis and empirical research on the relationship between venture capital investment and the business performance of Chinese companies.By summarizing the existing research conclusions,we can see that in the mature capital market,the operating performance of companies that have experienced venture capital investment may be more outstanding,and the future development potential of the company is also strong.At the same time,the local economic development status,political environment,and risk organization forms will affect the venture capital investment,and thus affect the business performance of the company.Judging from the situation in China,the time for the development of venture capital is still relatively short,and the corresponding data is not rich enough,and the legal system is still not perfect.When our country’s scholars study the impact of venture capital investment,they generally draw on the development of foreign countries.However,whether or not this is in line with the development of China still has many questions.To explore the actual impact of venture capital on GEM companies,it must be obtained through empirical research.This article selects a representative company in the Shenzhen GEM and divides it into risky investment background according to the risk investment situation.In theory,financial indicators can be used for analysis when judging the level of business performance,and the data obtained is more intuitive and more effective.This article also uses financial indicators for follow-up analysis.The main indicators are profitability,operational capabilities,and development capabilities.Profitability can reflect the company’s operating profit,operating capacity can reflect the company’s operating results,and development capabilities can reveal the company’s long-term development possibilities.This paper believes that the selection of these three indicators can be an objective assessment of business performance,reflecting the true situation of the company.In order to verify whether the performance of the company will change when the background of the venture capital changes.This paper takes the risk investment background as the explanatory variable,the enterprise operating performance index as the explanatory variable,and the other indicators that affect the performance as the control variables.Through the sample analysis and the regression analysis method,the final calculation results are obtained.Through the analysis of the calculation results,it is understood that companies with risk investment background have relatively high profitability,but the other two indicators do not show unique advantages.This kind of situation shows that the impact of venture capital on Chinese companies is not obvious,and there are also many defects in the development process,and continuous improvement is still needed.Finally,based on the conclusions drawn from the study,we summarized the issues and made recommendations,such as widening the current financing channels,expanding the venture capital exit channels,strengthening the role of intermediaries,and strengthening government support.
Keywords/Search Tags:Venture capital, GEM companies, business performanc
PDF Full Text Request
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