The Impact Of Venture Capital On The Production Efficiency Of Invested Companies

In recent years,the economic development of China has been constantly emphasizing supply-side reform.The "extensive" growth model has continuously shifted to the "intensive" growth mode,which focuses on the efficiency of the allocation of production factors.In this context,many companies in our country are paying more attention to the improvement of their own production efficiency in the process of development,in order to adapt to the new economic growth environment and to gain the development opportunities.However,many companies in our country,especially start-ups,are subject to greater financing constraints and lack of necessary development resources in the process of technological improvements,mode breakthroughs and specialized production that contribute to the improvement of production efficiency.Venture capital(VC),with its dual advantages in capital and resources,can effectively compensate for the capital needs of invested companies and provide them with a range of value-added services.Therefore,venture capital will have a certain impact on the production efficiency of the invested companies.At the same time,venture capital is divided into IVC and CVC due to different sources of capital,resource base and investment objectives.These two types of different investment institutions will have a certain impact on the production efficiency of the invested companies,and there may be some differences in the impact.At present,the research on the relationship between venture capital and its type at home and abroad,and the production efficiency of invested companies has been gradually developed.A few domestic scholars have analyzed the impact of venture capital on the production efficiency of the invested companies,but don't start from the types of venture capital,especially the corporate venture capital(CVC)has a specific background of the parent company,compared with independent venture capital(IVC),whether it can be more worthwhile to promote the production efficiency of the invested companies.Based on the previous researches,this paper analyzes the mechanism of venture capital,independent venture capital and corporate venture capital on the production efficiency of invested companies through familiarity with relevant concepts,combined with the theory of resource base,knowledge base,organizational learning and transaction costs,then puts forward four research hypotheses and verify whether the hypotheses are valid through empirical research.From the perspective of geographical relevance and CVC's parent company's industry correlation,this paper also explains the impact of independent venture capital and corporate venture capital on the production efficiency of invested companies and their influence differences.This paper takes a sample of 1271 listed companies whose IPO are listed in China's A-shares from 2004 to 2015,and takes TFP as a measure of the companies' production efficiency.In the research method,this paper firstly uses the semi-parametric LP method to calculate the value of total factor productivity;then on the basis of descriptive statistics and grouping comparison analysis,using multiple regression analysis to test the four hypotheses;at the same time,in order to overcome the sample selection bias and the endogeneity problem,this paper conducts a more accurate study with propensity score matching(PSM)and passes the robustness test.Finally,we find that venture capital,independent venture capital and corporate venture capital all can significantly improve the total factor productivity of the invested sample companies,and the promotion effect of corporate venture capital in our country is significantly less than that of independent venture capital.In terms of geographical correlation,both IVCs and CVCs can exert geographically close positive externality,and improve total factor productivity of the invested sample companies significantly.In the cases of CVC investment,the invested sample companies which are associated with the CVC parent company's industry,the total factor productivity of them is significantly lower than that of the invested sample companies which are irrelevant to the CVC parent company's industry.This also explains that the contribution of corporate venture capital to the total factor productivity of the invested sample companies is significantly less than that of independent venture capital in China.In this regard,this paper puts forward the corresponding countermeasures and suggestions.