The Empirical Research On The Impact Of Venture Capital On Inefficient Investment Of Listed Companies

Venture capital originated in the United States.With the rise of the Internet and other high-tech industries,it has rapidly expanded in developed countries and has played a powerful role in promoting the modern scientific and technological revolution.In recent years,China’s venture capital industry has developed rapidly.Especially after the opening of SME board and GEM,it has achieved rapid growth in both scale and investment volume.In the modern enterprise with a high degree of separation of ownership and management rights,due to the problems of entrusted agency and information asymmetry,there are widespread inefficient investment behaviors in listed companies in China,namely the phenomenon of over-investment and under-investment.Such inefficient investment behavior will not only harm the goal of maximizing the value of the enterprise,but will also reduce the effectiveness of the overall resource allocation of the market.Through domestic and foreign literature review,we can find that domestic research on venture capital investment and inefficient investment in their respective fields has become more in-depth,and less involved in research on the relationship between venture capital and corporate inefficient investment.Based on this,the article first introduced related concepts such as venture capital and inefficient investment,combined with information asymmetry theory,principal-agent theory,contract theory,and certification theory,and theoretically analyzed the inefficient investment behavior of listed companies.Then select the data of small and medium-sized companies listed on the SME board and GEM from 2011 to 2015 as a sample,establish a model to measure the level of inefficient investment,and use descriptive statistics and multiple regression methods to conduct empirical tests,respectively,from whether or not venture capital is involved,and the proportion of shareholding and joint investment,discusses the influence and mechanism of venture capital of China’s listed companies’ inefficient investment behavior.The research results of the article show that:China’s listed companies have serious problems of inefficient investment,there are serious underinvestment,and relatively few overinvestment.The free cash flow of enterprises is positively correlated with overinvestment,and the cash flow gap is positively correlated with underinvestment.Enterprises with venture capital backgrounds can effectively curb the overinvestment caused by the abuse of free cash flow,and can also alleviate the underinvestment caused by internal cash flow shortage to a certain extent;the proportion of venture capital shareholdings to overinvestment is not obvious,and has a more significant mitigation effect on the underinvestment of enterprises;joint investment can effectively reduce overinvestment of enterprises and has no significant impact on mitigating underinvestment.Finally,combined with the research results,we put forward some inspirations and suggestions from different perspectives,hoping to promote the development of risk investment in China,and provide a useful reference for optimizing the investment efficiency of listed companies in China.