An Empirical Research On The Effects Of Venture Investment In The Performance Of Companies In The GEM

With the development of capital market,venture investment has become an important way to finance for pioneering enterprises.The amount of capital management in chinese equity markets is approaching 8.7 trillion RMB by the end of 2017.With the increasing proportion of venture investment in enterprise financing,researchers in academic circles pay more attention to it.To this issue,academic views are divided into two main schools.One is that venture investment plays a major role in screening enterprises,but they think little of the constant growth of enterprise performance.And the other believes that venture investment will nurture the invested enterprises by offering reputation and various value-added services.The two points are known as filtrating theory and nurturing theory.I analysed the inner link of venture invesment and enterprise performance and found that the venture investment has the motive and the mechanism to promot enterprise performance theoretically.Therefore,this paper basing on the nurturing theory explores whether the venture investment have the influence on the enterprise performance and how to influence,combining the reputation effect and the value-added effect theories.And due to difference of enterprise growth when the venture investment enters,there are possible differences in the impact of venture capital on enterprise performance.On the basis of this,I classify enterprises according to the moment of venture investment entering,and further researched the mechanism of venture investment's impact on enterprise performance respectively.I selects 569 enterprises listed on the GEM from 2009 to 2016 as a sampl and draws the following conclusions through theoretical and empirical research:venture investment can promote enterprise performance,which is resulted from the VC'participation in the board of the invested enterprises to make decision.And with the increase of the proportion of VC shareholding,venture investment improves the right in the decision-making of board,which will effectively promote the performance of the enterprise.Therefore,nurturing theory and value-added effect theory has been proved.On the contrary,the reputation effect did't pass the empirical test.Further,after dividing the sample enterprises into three groups,I found:(?)the main factor influencing the first phase enterprises is whether the venture investment join the board of directors.(?)and the main factor influencing the second phase enterprises is the proportion of venture investment shares.(III)As for the third phase enterprises,there are no factors that can significantly affect their performance.The results are consistent with the research findings on the sample enterprise as a whole.Hence,the influence mechanism of venture investment on enterprise performance will change with the growth cycle of the enterprise,which also provides a theoretical basis for the venture investment to better manage the enterprise.