Study On Decision-making Of Venture Capital In Agricultural High-tech Enterprise

It is very important for the overall construction of well-off society to properly solve the problem of agriculture, rural area and farmers. Agricultural high-tech, which plays an important role in changing the traditional agriculture to modern agriculture, is a powerful driving force and important guarantee to promote building new socialist countryside. Agricultural high-tech industry is gradually the new growth points of modern agriculture, which has decided the development of agriculture and competitiveness of agriculture. Agricultural high-tech enterprises, as agricultural entities in agricultural high-tech industry, have an important position in the development of national economy. But the high input and high risk of agricultural high-tech has become the main obstacle to financing for agricultural high-tech. The shortage of funds has hampered development of enterprises. The venture capital is the incubator and booster of the development of the high-tech industrialization, which plays an important role in advancing science and technology achievement transformation, promoting technological and institutional innovation, cultivating the growth of enterprises and optimizing the economic structure. The injection of venture capital will become a effective form for resolving the shortage of funds in the development of agricultural high-tech enterprise.Because of the investment of agricultural high-tech enterprise very riskily, venture capital institutions face a variety objective or subjective risk factors, which variation, complexity, and uncertainty result to delay, suspend and fail or fail to the expected technical and economic indicators in the business investment. Therefore, when venture capital institutions invest the projects of agricultural high-tech enterprise, it must predict risk accurately and look for a more scientific and rational risk investment decision-making method. Then venture capital institutions reduce the risks of the investment decision-making. This has an extremely important role for the success or failure of the projects enterprises investment. In view of these, based on the theory of decision-making of risk investment, this paper studies the risk investment decision making of agricultural high-tech enterprise for the characteristics and the growth mechanism of agricultural high-tech enterprise from the perspective of risk investment institutions, which analyses by standardized research and empirical analysis, qualitative and quantitative analysis methodology. At the same time, this paper refers to the relevant domestic and international decision making theory literatures of venture capital on high and new technology. This paper describes the attribute, identification and measure of risk in the investment of agricultural high-tech enterprise. On the basis of these this paper analyses for the characteristics, the effect of risk and returns and decision-making methods in the venture capital of agricultural high-tech enterprise. What's more, this paper establishes the investment decision-making model of agricultural high-tech enterprise venture capital as the decision-making criteria of expecting the minimum value of Bayesian risk by expected utility theory and the theory of Bayesian decision. Finally, after this paper uses empirical validation of this model, the results shows this model can improve the science and accuracy of decision-making by the adoption of the new information prior to decision-making.