An Empirical Study On The Influence Of CVC On The IPO Performance Of Startups

With the development of China’s economy,startups represented by the Internet and high-tech enterprises have emerged rapidly.As a major source of funds for these seed companies,the venture capital industry has also developed rapidly.Venture capital plays an important role in China’s capital market.At the same time,as the company’s competition intensifies and the market paces up,in order to maintain the market position and explore emerging industries,more and more companies have begun to set up their own venture capital companies or participate in venture capital investment companies.With the official release of the registration and management of the Science and technology innovation board,the Science and technology innovation board has become a new listing board and investment hotspot,and the Corporate Venture Capital(CVC)will usher in a new round of development.By literature analysis and theoretical analysis,this paper finds that domestic and foreign researchers mainly researched the effect on CVC’s parent company’s corporate performance made by CVC.startups’ innovation performance,bilateral value,etc.But they rarely discuss CVC in China,the influence of the proportion of CVC shares and the heterogeneity of the parent company on the IPO performance of the startups.Besides,the existing research mostly focused on the overall impact of CVC on the startups but ignored the negative impact of CVC on the startups.From the perspective of CVC,this paper takes 632 listed companies of SME and GEM as samples to study the impact of CVC participation on the performance of IPO companies.This paper uses CVC participation,shareholding ratio,parent company’s industry,and participation management to examine the impact of CVC on the performance of entrepreneurs before and after IPO.In the empirical aspect.using descriptive statistical anallysis and cross-sectional regression.this paper analyzes the impact of CVC participation on the performance of IPO enterprises.and deeply discusses the influence of both proportion of shares that have been neglected by existing research and the non-linearity of parent company’s performance on the IPO performance of startups enterprises.Finally.the paper conducts a robustness testThe empirical results show that:CVC participation has a positive impact on the performance of IPO enterprises;the shareholding ratio has a non-linear effect on the performance of IPO companies,and there are two thresholds for the share of CVC shares,which have a complex impact on the performance of IPO companies with different investment strategies;the parent company’s industry relevance has a positive impact on IPO corporate performance,and highly industry-related(horizontal industry-related)can improve IPO corporate performance.Vertical industry-related has an adverse impact on IPO corporate performance,but the results are not significant;participation in board governance of IPO corporate performance has a positive impact.Finally,this paper proposes policy recommendations from the perspective of CVC parent company,startups enterprise and government,analyzes the shortcomings of this paper,and look into the futuie research.