Research On The Impacts Of Venture Capital On Enterprise Inovation

Technological innovation is changing with each passing day,and the world economic structure is changing with technology.In the increasing competitive market,the way in which capital enables enterprises to innovate is the only way for the new generation of unicorns.Since there are many problems such as high investment on innovation and long financing period before listing,obtaining venture capital funds is an important way to solve the above problems.In generally,venture capital improves the innovation ability of enterprises by investing capital and other resources,screening companies through investment experience and due diligence.And providing value-added services such as business consulting.It also increases the company's willingness to innovate by setting up board seats and sending managers to participate in corporate management,so as to enhance the innovation performance of the enterprise.On the other hand,the short-term investment returns of venture capital and the motivation for resource extraction will reduce the innovation performance of the enterprise.Therefore,this article takes the impact of venture capital on the level of corporate innovation as the main research content,and explores its mechanism of action in depth.In addition,for start-ups,venture capital institutions belong to the category of shareholders,and management is the key decision maker of the enterprise.In the case of separation of the right of management from the right of ownership,how does management power affect venture capital institutions and enterprise innovation?This article takes the above issues as the main starting point,discusses venture capital,based on the existing literature on venture capital,managerial power,and corporate innovation,combined with the corporate governance structure under the background of China's special system,and takes corporate innovation as the main research object.The impact mechanism on corporate innovation has enriched the theoretical research on corporate innovation.In the empirical research part,this paper takes the annual data of 2006-2017 as the research sample,uses the OLS model to empirically study the impact of venture capital intervention on corporate innovation,and uses managerial power as moderator variable to study the mechanism of the principal-agent problem caused by the separation of two rights on enterprise innovation,and further taking the special system of our country as the background,this paper studies the mechanism of the differences in the background of corporate equity on the relationship between the venture capital and corporate innovation.Venture capital institutions and equity background are all in the shareholder category,and management power is in the manager category.The paper finds that:(1)Companies with venture capital participation have a higher level of innovation;(2)Managerial power reduces the role of venture capital in promoting corporate innovation performances,that is,the higher the power of management,the less significant the positive influence of venture capital on enterprise innovation;(3)The participation of state-owned shareholders also restricts the role of venture capital in supporting corporate innovation performance,that is,under the nature of state-owned property rights,the positive impact of venture capital support on corporate innovation is not significant.In addition,based on the above research,this article further explores the impact of venture capital on the corporate strategy.It is found that companies with venture capital support often choose offensive corporate strategy.Since innovation is an important dimension of corporate strategy.Once again,the positive effect of venture capital on the level of corporate innovation has been proven.This article delves into the mechanism of the role of venture capital,operating rights,and ownership power on the corporate innovation performance.On the one hand,it provides theoretical references for venture capital institutions to select projects and provide value-added services to investees.On the other hand,it also provides the decision-making basis for strategic and management structure setting to enterprises with venture capital backgrounds.