Venture Capital Holdings,Board Characteristics And Corporate Performance

Venture capitals was an important factor for the outbreak of entrepreneurial in America,it once provided important support for the transformation of America's economic,and now venture capital is developing rapidly and becoming more and more important in China.Based on "monitoring hypothesis" theory and "certification hypothesis" theory,related researches have proved the effect venture capital holding on company performance and board characteristics.Some classic foreign studies discussed the three relations between venture capital holdings,corporate governance and corporate performance,but related domestic researched is still relatively few,especially the researches chose board characteristics as their mediator variable.Based on the analysis of classical theories and existing researches,this study selected the data of GEM Listed Corporations in 2010-2014 year as sample,selected ROE,TOA and the growth rate of operating incomes as dependent variables,selected VC holding as independent variable,and selected proportion of independent directors,board size,board shareholding and duration as intermediary variables.Based on "methods of gradual examination? proposed by Baron and Kenny in 1986,analyzed the correlations between variables and the mediating effect of board characteristics.The study found venture capital holding leads to a bigger boards with more independent directors and higher proportion of directors holding,and in this process,invested company's performance has improved,thus we proved the monitoring hypothesis theory that claims VC improved invested companies' performance by improving their governance applies to the GEM listed companies in china.In the value-added process of VC holders,it is proved to be an important way to change the board characteristics and thus improve the level of corporate governance.