The Relationship Between The Management Intervention Of Venture Capital Institutions And The Performance Of Start-up Enterprises

With the development of capital market,venture capital has become an important channel for venture capital financing.As of November 2018,the capital management scale of China's equity investment market has reached 9.8 trillion.With the increasing proportion of venture capital in venture capital financing,the academic community is paying more and more attention to it.This paper takes the SME board and the GEM board companies listed in China's A-shares from 2004 to 2014 as the research samples,and examines the impact of the management intervention and its involvement on the performance of startups.Based on the Heckman two-step sample selection model,this paper constructs a relationship model between supervisory control intervention,operational management intervention,management involvement degree and firm performance.The research results show that the supervisory control intervention is negatively correlated with the performance of entrepreneurial enterprises;the operational management intervention and the degree of management involvement are positively related to the performance of entrepreneurial enterprises.In addition,this paper selects the timing of the venture capital institution's intervention and the hightech attributes of the startup enterprise as grouping variables.The empirical results show that when the timing of the intervention of venture capital institutions is late,or when the startup enterprises belong to the high-tech industry,the negative impact of the supervisory control intervention on the performance of the startup enterprises is more significant;the timing of the involvement of venture capital institutions and the hightech attributes of entrepreneurial enterprises will not affect the positive effect of the operational management intervention on the performance of entrepreneurial enterprises;when the venture capital institution's intervention time is earlier,or when the startup enterprise belongs to the high-tech industry,the positive influence of the degree of management involvement on the performance of the enterprise is greater.By adding the industry expertise of venture capital institutions and the risk factors of venture companies,this paper further discovers that the higher the industry expertise of venture capital institutions,the greater the positive impact of the degree of management involvement on firm performance;the higher the risk of starting a business,the weaker the impact of the degree of management involvement on corporate performance.This paper has a high theoretical and practical significance for supplementing and expanding the research scope of venture capital and guiding the post investment management of venture capital.