Research On The Effect Of VCs On Enterprises’ Innovation And Performance

China’s VC industry has developed quickly in the past few years.Various VCs have been established and investment cases and scale also increased rapidly.So what is the impact VCs have on the innovation and performance of enterprises? And does the effect differs among different kinds of VCs?Many predecessors have studied this problem,but they seldom classified the indicators in detail,especially the indicators of performance.So it is difficult to distinguish the effects of VCs on different types of innovation and performance indicators.When it comes to the characteristics of VCs,due to the origin of VCs in China,domestic scholars payed much attention to the relationship between VCs’ equity background and innovation and performance of enterprises,while the other characteristics of VCs got relatively less concerned.Therefore,this paper synthesizes the function mechanism of VCs to enterprises,chooses all companies listed on GEM Board from 2009 to the end of 2015 as samples,and takes IPO as the time node,studies the effects of VCs’ intervention,the experience of VCs and the participation degree of VCs on invested enterprises’ innovation and performance before and after IPO.We measure the innovation in two dimensions: innovation input and innovation output while the performance is divided into profitability performance,growth performance and value-added performance.At last,the empirical results are as follows:1)Venture capital does promote the innovation input and performance of the invested enterprises before the IPO,but after these enterprises had listed,whether the venture capital once intervened or not only had significant effects on innovation input.VCs’ contribution to the innovation output and performance after IPO was positive but not significant enough.2)The experience of venture capital had more effect on the innovation input of enterprises,and this positive effect was very significant before and after the listing of enterprises.3)The participation of venture capital had more impact on corporate performance,and in detail,the holding time of venture capital mainly affected corporate value-added performance,and whether venture capital enters the board of directors had more impact on corporate profitability performance.