Study On The Effect And Impact Mechanism Of Venture Capital On Firm Performance

China's venture capital market have developed rapidly in recent years,which promotes country's economic growth and technology innovation.However,the effect and impact mechanism of venture capital on firm performance is need to further study.This study use the data of China's private manufacture listed firms to investigate the effect and impact mechanism of venture capital on firm performance,employing panel date models.Our research's main findings are as follows.(1)Venture capital significantly affects firm performance.Venture capital has a positive impact on the return of total assets and the growth rate of business revenue of private listed firms.The rate of return on total assets and the growth rate of business income are higher in venture capital supported firms.Venture capital has a negative impact on the total assets turnover rate,and the correlation with the rate of return of equity is not significant.(2)Venture capital has impacts on firms' developmental and profit management behavior.The impact of venture capital on fixed assets and business income is negative,but the effect on net profit is positive.Venture capital supported firms' total assets turnover rate is less than that of firms without venture capital supported in the first year before listing,indicating that the adverse selection hypothesis is supported.(3)Asset structure and corporate governance could moderate the relationship between venture capital and firm performance,which are the impact channels of venture capital on firm performance.Venture capital helps to improve corporate governance.Corporate governance helps to promote the impact of venture capital on firm performance.The more independent directors,the greater the impact of venture capital on the rate of total assets turnover.The impact of venture capital on the performance of high-tech industry is more significant,but it has no significant impact on non-high technology industry.This research can provide some references for government to manage the venture investment industry scientifically,promote the healthy development of the venture capital market and activate the vitality of the enterprise.