An Analysis About The Influence Of Venture Capital On The Operating Level Of The New OTC Market Listing Companies

Since the expansion of the National Equities Exchange and Quotations in 2013,it has achieved a leap forward.In just five years,more than 10,000 enterprises have been listed in the NEEQ.However,compared with the remarkable achievement of the development of the NEEQ,there are few domestic researches on it.This paper mainly hopes to increase the understanding of the NEEQ by exploring the influence of venture capital on the management level of the listed enterprises.This paper chooses 1,143 enterprises listed on the NEEQ in 2014 as research samples.By paired contrast analysis of operating results and business compliance of listed enterprises with venture capital support and those without venture capital support to discuss the impact of venture capital on the business level of NEEQ listed enterprises in China.Besides,this paper also tries to draw the conclusion that the reputation of venture capital has a great impact on the business level of NEEQ listed companies by comparing the different performances of enterprises that are highly praised by venture capital and those with low reputation and venture capital.Based on the comparison test results,the data shows that listed companies without risk organizations have strong profitability and operational capability after listing,which is in line with the “reverse selection theory”.In addition,they are more likely to have compliance risks at the management and decision-making,causing the loss of corporate assets and investors.The impact of different characteristics of venture capital on the business,the study found that companies with high reputation risk capital support have better profitability after being listed than companies with low reputation risk capital support,the higher the proportion of venture capital investment,the more unfavorable the development of the company,the profitability of enterprises with venture capital joint holdings after listing is significantly higher than that of venture capital with single holdings.Finally,several policy recommendations are proposed based on the conclusions.Venture capital,regulatory agencies and companies themselves have a vital role in the venture capital industry.The development of the New Third Board is the result of multiple efforts.