A Study On Venture Captial Market About Investment And Financing Mechanism

In the past twenty years,the amazing development of venture capital market is not only owing to the rising of high and new technology,but also owing to the change of market supervision.However,the concerning research is limited.In recent years, Chinese government is trying to cultivate the venture capital market.Therefore,It is significant to study the operating mechanism in the venture capital market.This paper has studied the investment and financing mechanism in the venture capital market on the views of investment organization.In the first place, the design of risk management in the investment mechanism has been studied by discussing assessment and invest timing.Then, the design of risk share in the financing mechanism has been studied by analyzing the change of the financing mechanism and the feature of the investment network.Lastly, the systematic risk in the venture capital market has been studied by the method of social network.the contribution of this paper are as follows:Value-leaking losses are the common phenomenon in real assets pricing, which stem from the cash flow and convenience value ratio. Considering value leaking losses, we set up a unique binomial decision tree with risk-neutral probabilities to approximate the uncertainty associated with the changes in the value of a project over time based on the CA method, and use dynamic programming to solve the binomial decision tree. At last, we compare the option value of the traditional CA model with this model through an example.The result indicate that out model would be better to reflect the change of the real asset.This paper relaxes the assumptions of infinitely expiration of investing options and random walk of prices in standard real option based on the analysis of emerging technology investment projects. A real option model has been established to value the emerging technology project, and the optimal investing time and the optimal capacity have been provided to discuss the effect of risk and expiration. Using a numerical example, the conclusions are validated and an analysis about degree of influence is presented. The results show that: to the emerging technology project which has finitely expiration, for low levels of risk an increase in risk accelerate the investment time and decrease the capacity of investment, while for high levels of risk an increase in risk delay the investment time and increase the capacity of investment. In addition, an increase in the expiration time can accelerate the investment time, while has no effect on the capacity of investment.This paper study systemic risk which caused by the risk-sharing mechanism from the perspective of network topology. By setting up a rollover risk model, taking the clustered network and the ring network as an example, we study the rollover risk infection in cross-sectional risk sharing mechanism and compare the effects of different network structures on systemic risk from three aspects including fragility, contagion and welfare. The results are as follows: although reduce the bank's own risk, the risk-sharing mechanism can lead to systemic risk when the exogenous shock happens. The topological structure of network will affect systemic risk, and the concerning welfare is decided by the topological structure and liquidation ratio.