The Impact Of Venture Capital On Non-Efficiency Investment Of Enterprises

The non-efficiency investment behavior of enterprises seriously affects the future development of the company,and will invalidate the allocation of market resources,resulting in waste of social resources.As a more professional investment method,venture capital not only brings equity capital to the enterprise,but also makes full use of its own resources to bring new opportunities to the enterprise and support the enterprise to make foreign investment.Through literature review,this paper finds that there are relatively few studies on the role of equity investment in corporate inefficient investment governance,and few literatures consider the heterogeneity of equity in invested companies.A new theoretical analysis framework of equity investment on corporate inefficient investment governance is constructed,and corresponding assumptions are put forward.By studying the listed companies in China in 2009-2016,this paper finds:(1)The problem of non-efficiency investment in Chinese enterprises is outstanding.(2)The involvement of venture capital institutions has a significant mitigation effect on corporate investment.(3)The involvement of venture capital institutions has a significant role in promoting excessive investment behavior of non-state-owned enterprises.(4)Venture capital companies can alleviate the impact of cash gaps in stateowned and non-state-owned enterprises on corporate investment.(5)For non-stateowned enterprise projects,venture capital institutions will exacerbate excessive investment by enterprises,but will inhibit the promotion of excessive cash flow by enterprises.(6)The heterogeneity of equity in project companies will affect the relationship between equity speculation institutions and over-investment in enterprises.The main impact is the relationship between venture capital institutions and overinvestment of enterprises: for state-owned enterprises,venture capital has no significant impact on excessive investment of enterprises,and has no significant impact on the relationship between free cash flow and excessive investment;In other words,venture capital will promote excessive investment,but inhibit the free cash flow of enterprises to promote excessive investment.