An Empirical Study On The Effect Of Venture Capital On The Privatization Of State-owned Enterprises

We select all the privatization reform state-owned enterprises of China's A shares as samples,firstly study on the role of venture capital in the process of privatization reform of state-owned enterprises.Firstly,we discuss the impact of venture capital on the privatization reform of state-owned enterprises.The effect of privatization reform includes three aspects:business performance,capital structure and corporate governance.The privatized state-owned enterprises are grouped by introducing a dummy variable with or without venture capital background,then all the samples were further analyzed by multiple regression analysis.We find that venture capital can improve the operating performance of privatized state-owned enterprises,reduce the interest-bearing debt ratio to optimize the capital structure,and reduce the management expense ratio to improve corporate governance.Secondly,in order to further study the impact of characteristics of venture capital on the privatization reform of state-owned enterprises,the venture capital were divided into two groups according to the five characteristics of venture capital,namely the shareholding ratio,participating in the board of directors,joint investment,background and reputation,and were compared analyzed by regression analysis.The results show that high proportion of shares,participation in board of directors,joint investment,state-owned background or high reputation of venture capital can significantly improve the performance of enterprises;High proportion of shares,participation in the board of directors,joint investment,state-owned background or high reputation of venture capital can significantly reduce the interest-bearing debt ratio;High shareholding,joint investment,or state-owned of venture capital can significantly reduce management expense ratios.The conclusions of this paper have important guiding significance for venture capital and privatization of state-owned enterprises.State-owned enterprises can introduce the venture capital of different characteristics according to the needs of their own goals in the process of privatization,so as to achieve better reform effect.The contribution of the paper is mainly reflected in the following aspects:Although there are a lot of researches on the venture capital and privatization reform of state-owned enterprises,researches on the impact of venture capital on the privatization reform of state-owned enterprises are very little.This paper provides a new perspective to deepen and expand the research of venture capital and state-owned enterprise privatization.