Pre-selection,Supervision And Debt Financing Constraints Of Venture Capital

In the process of China's economic upgrading,high-tech enterprises play an important role.In order to solve the financial problems encountered by high-tech enterprises in development,the regulatory agencies have continuously reformed the capital market system,from the establishment of the GEM to the launch of the science and technology board,and the implementation of the registration system of the science and technology board,the continuously optimized capital market will help the high-tech enterprises to develop rapidly.As a professional private equity investment institution,venture capital can use their professional experience and resource advantages to better serve high-tech enterprises.Therefore,researching the role played by venture capital institutions will have great practical significance for solving the dilemma of financing difficulties for small and medium-sized high-tech enterprises.In academic research,in view of the financing constraints faced by high-tech enterprises,the predecessors focused on combining debt financing constraints with equity financing constraints,using the sensitivity between investment and cash flow for empirical research,and whether venture capital institutions can alleviate high debt financing constraints faced by technology companies and their mitigation mechanisms have not been studied in depth.At the same time,the predecessors' research biased the mechanism of the venture capital institutions' Pre-IPO stage,and there were less research on the mechanism after listed in capital market.Therefore,this paper has conducted in-depth discussions on the issue of risk-reducing institutions' efforts to alleviate debt financing constraints,and analyzed and tested the following two issues:(1)In addition to bringing equity capital to high-tech companies,venture capital institutions can still ease the debt financing constraints of enterprises after they are listed.(2)After the listing of the company,how can these venture capital institutions ease the debt financing constraints of the company.In order to verify the mechanism of action of risk investment to ease debt financing constraints.First of all,this paper makes a theoretical derivation of how venture capital institutions can alleviate the debt financing constraints of high-tech enterprises,and deduces the mechanism for risk investment institutions to play pre-selection and to ease the debt financing constraints faced by enterprises by entrusting directors and supervisors;Secondly,this paper takes the financial data of the listed companies on the GEM in2009-2017 as the research sample,at the same time,the paper screens the data according to the following principles:(1)Excluding the data samples listed in the current year;(2)Excluding the samples of high-tech attributes,according to the principle of substance overform,mainly eliminating culture,media,film and television,wholesale Listed companies that do not have high-tech attributes such as retail;(3)Exclude venture capital from participating in the establishment of research samples for listed companies or holding companies;(4)Excluding listed companies with missing major financial indicators,especially the total amount of debt financing and financing constraint index(KZ).In the analysis of empirical results,Firstly,the descriptive statistics and correlation tests of the main research variables of this paper are carried out,especially the relevant characteristics of the risk investment institutions holding equity of listed companies on the GEM are deeply analyzed;Secondly,multiple regression analysis is carried out on the mechanism of venture capital institutions to ease debt financing constraints.Finally,the robustness test is mainly carried out by reconstructing the new financing constraint index.The research results show that:(1)The risk investment reduces the degree of information asymmetry between the invested enterprise and the external bank through pre-selection,thereby further alleviates the debt financing constraints faced by the invested enterprise;(2)After the listing of the enterprise,the venture capital institution alleviates the debt financing constraints by entrusting directors who play a supervisory role to enhance the transparency of information between the invested enterprise and the external bank;(3)After the listing of the enterprise,the role of supervisors who are entrusted by the venture capital in easing the debt financing constraints is not significant.