The Study On The Venture Capital Exits From The Influence Of Political Ties

Since July 2015,the State Council has put forward the”Guiding Opinions on Actively Promoting "Internet+" Actions",pointing out that it is necessary to give full play to the leading role of venture capital under the "Internet+" environment,and reduce the entry barriers for Internet companies to be listed.In the future,China will combine The reform of the securities law and the reform of the stock issuance system support the listing of Internet start-ups that are not yet profitable but have strong growth potential on the GEM,making the development of venture capital in China more rapid.At the same time,the research on the practical effects of venture capital withdrawal and the impact assessment of political connections have gradually attracted the attention and confirmation of scholars.The positive practice background of China's venture capital provides a relatively good research situation for exploring the impact of Chinas political connections on venture capital exit.Considering that political connection is one of the most important attributes of venture capital institutions,how difficult and effective the withdrawal of venture capital is a research direction that many scholars pay close attention to.The author starts with the study of the impact of political connections on venture capital exit.At the investment institution level,it analyzes the impact of China's political connections on the possibility of exiting venture capital,the exit period,and the exit channel,as well as the influence of different types of different structures,political connections on the possibility of exiting venture capital,exit time,and exit channels.First of all,based on the informational effects and resource effects,incentive theory,benign cycle and other theoretical mechanisms in the political association hypothesis proposed by relevant scholars at home and abroad,this paper proposes corresponding aspects from the success rate of venture capital exit,exit deadline and exit channel selection.Study hypotheses and then propose further research hypotheses based on the structure and type of political connections.Secondly,this paper collects the required research sample data through the Qingke Private Equity Database,Wind Database,China Venture,the public prospectus submitted by the listed company,and the official website of the venture capital institution,screen out 3,549 information disclosure complete domestic and international venture capital exit events,using the binary Logit regression model,the Cox risk scale model,A number of models such as Logit model are used to compare the possibility of venture capital exit at home and abroad,the exit period of venture capital,the choice of risk capital exit channel,and then replace the political relationship with four different types of political structures(central ownership politics).Relevance,local ownership-type political connection,central management-type political connection,and local management-type political connection),compare the influence effect of venture capital institutions with different political contexts on the exit of venture capital.Finally,using the Heckman two-stage model,the PSM propensity score matching method to control the selective bias of risk capital,the alternative measurement method of risk capital exit,and the impact of cross-regional legal and institutional differences,further test the VC institutions.Whether the background of political association can play a significant role in promoting the exit of venture capital,and judge the difference in the effect of political connections of different types and structures on the exit of venture capital.Using the full sample data to test,it is found that the political background of venture capital institutions has a significant positive impact on the exit of venture capital,which is reflected in the possibility of increasing the exit of venture capital,shortening the exit period and exiting through domestic IPO and mergers and acquisitions.This is consistent with the view of the political connection hypothesis.In addition,from the composition and type of political connections,the positive impact of ownership-type political connections on risk capital withdrawal is weaker than that of management-type political connections,while the influence of central-level political connections and local-level political connections on the exit of venture capital There is no significant difference,and the research results are consistent with the motivation theory hypothesis.Venture capital with a politically relevant background makes it easier to choose both domestic IPOs and mergers and acquisitions,especially in the domestic IPO exits.This shows that the wind-invested capitalists with political connections will have more of the IPO regulators and IPO processes.More information and resource advantages to increase the likelihood of corporate IPO approval.Finally,after controlling the selective bias of venture capital,the alternative measurement method of risk capital exit success,and the differences between cross-regional laws and institutions,the influence of political connections on promoting venture capital exit is still significant.