Research On Influence Of Venture Capital On The Business Performance Of Listed Companies In Green Industry

With the rapid development of China's economy,problems such as environmental pollution,resource exhaustion and ecological destruction are increasingly serious,so promoting the upgrading of industrial structure and developing green industry have become the important way to achieve green growth of economy.As the core of national economy,finance is a vital driving force for the development of green industry,and the growth of green industry also needs financial support.Chinese listed companies in green industry has three characteristics in their initial and growth stage: high growth potential,high tech and high risk.The development of green industry requires a lot of financial support,but these companies have not yet formed stable cash flow and industrial assets,so it`s difficult to obtain support from traditional financial channels such as banks.As an innovative pattern of financial investment,venture capital prefers to invest the enterprise which has the features like high growth ability,high potential income and high risk.In this way,venture capital conforms to the characteristics and financial needs of the green industry listed companies in the initial and growth stage.Venture capital can resolve contradictions between the fund demand gap and the existence risk of the companies,also provides value-added services and supervisory incentive services.However,it is still controversial that whether venture capital can improve the performance of the companies effectively.Besides,the current research on venture capital are mostly based on the overall enterprise of the motherboard,the small board,or the gem,the research about listed companies in green industry is relatively vacant.Therefore,this paper study the influence of venture capital on the performance of listed companies in green industry from the microscopic eagle.The result of the study has an important significance in strengthening the understanding of the relationship between venture capital and green companies,promoting a better cooperation between the two field,perfecting green financial system and actualizing green development.First of all,this paper collects the research achievement of relevant literature at home and abroad and summarizes the relationship between finance and green industry,venture capital intervention and corporate performance,venture capital institution's heterogeneity and corporate performance.Secondly,this paper defines related conceptsof venture capital,green industry and business performance.It also reviews the principle-agent theory,screening and monitoring theory,certification theory,grandstanding theory and sustainable development theory.Besides,by statistical analysis method,it analyses the present situation of venture capital,listed companies in green industry and venture capital investment in listed companies in green industry.Then it elaborates the internal influence mechanism of venture capital intervention and venture capital institution's heterogeneity on the performance of listed companies in green industry.On the basis of theoretical analysis and current situation analysis,we put forward the research hypothesis of this paper,and select the panel data of 131 listed companies in green industry from 2000 to 2016 in the A-share market which is divided into three categories: environmental protection,energy conservation and clean energy.The return on equity,return on total assets and the growth rate of business income are used as the indicators to measure the operating performance.And construct the model to make an empirical research on the influence of the intervention of venture capital,the equity background,the reputation and the association on the performance of the listed companies in green industry.Finally,through the theoretical and empirical analysis,we draw the conclusion and put forward the corresponding countermeasures and suggestions.Through the research of this paper,the following conclusions are drawn:(1)The intervention of venture capital helps to improve the performance of listed companies in green industry.(2)The positive impact of the venture capital institutions `s state-owned background on the green industry listed companies` performance is not significant.(3)The high reputation of venture capital institutions has a positive impact on the performance of the listed companies in green industry.(4)The combination of venture capital institutions has a positive impact on the performance of listed companies in green industry.In view of the above conclusions,the following countermeasures and suggestions are put forward:(1)Optimize the ownership structure and introduce the venture capital institution in a timely manner.(2)Introduce the venture capital institutions with high market degree and the state-owned background.(3)Accurately judge the quality of the venture capital institution and improve the quality of gained services.(4)Drawn several venture capital institutions in and strengthen the joint advantage.