Differences In Board Characteristics And Corporate Performance Of GEM Listed Companies From The Perspective Of Venture Capital Participation

Since the introduction of venture capital in the 1980 s,venture capital has achieved rapid development under the support of China's policy support and economy.Especially after the launch of the GEM in 2009,the development of the venture capital industry has been pushed to a climax.The high-risk,high-growth,and high-yield companies listed on the GEM attract venture capital and facilitate the venture capital intervention.In order to obtain the maximum investment income,venture capital will not only provide funds to the invested enterprise,but also participate in the operation and management of the invested enterprise,and use its professional skills and social resources to provide value-added services such as professional consultation to the enterprise,affecting the every aspect development of the enterprise.So how does venture capital participate in the process of enterprise management,how will it affect the characteristics of the board of directors of the company? By influencing the characteristics of the company's board of directors,what impact will venture capital have on the performance of the company?At present,academic research on the characteristics of the board of directors on venture capital is rare and there is no uniform conclusion.Based on the above problems,this paper first studies the relationship between venture capital and the characteristics of the board of directors of GEM listed companies.Then this paper studies the impact of board characteristics on company performance and internal control quality,and explores the specific impact of venture capital on startup enterprises.Therefore,this paper takes the companies listed on the GEM of the Shenzhen Stock Exchange from 2009 to 2014 as the research object,and measures the characteristics of the board of directors by the combination of the chairman and the general manager,the size of the board of directors and the proportion of independent directors.In order to overcome the endogeneity problem,this paper uses the Difference in Difference(DID)method to study the impact of venture capital participation on the characteristics of the board of directors.This paper further studies the impact of board characteristics on company performance and board characteristics on internal control quality.Through two levels of research,this paper finds:The GEM-listed companies with venture capital participation tend to choose the mode of combining the two roles of chairman and general manager.The two-in-one model is conducive to improving the performance of the company and the quality of internal control;The participation of venture capital promotes the company's board of directors to be larger.The size of the board of directors is directly proportional to the company's performance and internal control quality.The participation of venture capital leads to a higher proportion of independent directors,which is conducive to improving the company's performance and internal control quality.In theory,based on the DID method to overcome endogeneity,this paper discusses the specific impact of venture capital on the characteristics of the board of directors of GEM listed companies.This paper further explores the impact of board characteristics on the performance of GEM listed companies and the quality of internal control,and makes up for the lack of predecessors to study the impact of risk investment on the characteristics of the board of directors,forming a more complete transmission mechanism.In practice,this paper also provides experience for how to participate in the management of venture capital after entering the invested company,and provides a theoretical reference for the government to guide the development of venture capital industry.