Research On The Guiding Effect Of Government Venture Capital Guiding Funds

At present,China's economic development has entered a new normal period.The economy is facing both great opportunities and the enormous challenges of dual pressures which are economic downside and inflation.Therefore,it is particularly important to realize the optimization and upgrading the industrial structure and improvement the innovative vitality of the small and medium-sized innovative enterprises.The government venture capital guidance fund is a policy fund established by the government and invested by social capital.It is a policy fund established by the leverage amplification effect of financial funds to ease the financing difficulties of venture capital enterprises and promote the optimization and upgrading of industrial structure.In May 2015,the central government clearly put forward,"multiplying the central government to guide the emerging industry venture capital scale,accelerate the establishment of a national new industry venture capital fund,improving the long-term operation of the market mechanism to achieve effective recovery of funds and the use of rolling guide,crack innovative SME financing problems".In the concrete practice,the guiding role of the government venture capital guidance fund has made great achievements,but there are still imperfect aspects.There are a series of problems such as poor participants' enthusiasm,small size,and over-regulation.The existence of these problems seriously undermined the guiding role of the government's venture capital guidance fund.Therefore,it is useful to conduct the theoretical and empirical analysis of the specific guidance effect of the government guidance fund,which benefit of strategic promoting the healthy development of the guiding fund,the structure optimization and upgrading of domestic industrial,and solving the financing difficulties of venture capital enterprises in China.This paper includes seven parts in order to make a more in-depth study on the guidance effect of the government venture capital guidance fund.The first part is the introduction,including the background and significance of the topic selection and so on.The second part is an overview of the theory and the present situation of development of guiding fund.The third part is analysis of the operation mode of the guidance fund.The fourth part is the theoretical analysis of the guiding fund's economics.The Markowitz mean variance model is used to demonstrate that the government has the guiding role of funds after setting up the guiding fund in the theoretical model.The fifth part is the empirical research on the guiding effect of thegovernment guidance fund.The Ministry adopts the fixed effect model and the mixed effect model,and uses the provincial Panel-data to conduct an empirical test on the guiding effect of China's guiding funds from two aspects of the national and regional levels.The sixth part is the empirical research on the innovation guidance effect of the government venture capital guiding fund.This part draws on fifth parts of the research train of thought,and uses the fixed effect model to conduct in-depth research on the guiding effect of the guiding fund from two levels of the whole country and the region.The seventh part is the research conclusion and prospect.Based on the above research findings,we reveal the differences between the regional guiding effects,and provide policy recommendations for better implementation of the fund's policy effects.Through theoretical and empirical research,we can draw the following conclusions: Firstly,the government set up the fund guide in theory which indeed can guide the venture capital into the field of entrepreneurship,especially investing in seed and start-up companies;Secondly,by improving the income benefit mechanism,facilities it can affect the expected return and risk fund,and play the guiding role of the fund better;Finally,the empirical results show that the establishment of guiding fund can not only play a guiding role but also and technical innovative capital guider.