| Since the GEM of Shenzhen in China was founded in October2009, innovation andhigh-growth high-tech companies, including some venture-backed enterprises could betraded publicly at this market in the GEM. Domestic venture capital has one more choiceto exit. As a new type of financing, not only provide supports to the development ofsmall and medium-sized enterprises, but also boost a number of technology enterprises,even entire industries. The rapid development of the venture investment makes itsmicroscopic behavior and function to be an important topic in theory.This article presents hypotheses that venture investment works for the developmentprocess of the intrinsic and extrinsic value of small and medium enterprises by analyzingthe relationship between venture capital and SME, GEM listed companies as researchsamples, proving whether venture capital have significant affection to investedenterprises, combined with empirical conclusions and discuss the cause of affection,presented policy and suggestion.First the article outlines the research background and research questions briefly,summarize the literature concerning venture capital economics’ affection at home andabroad, and established the research method and content arrangements. And analyzingthe pros and cons of affection that venture investment intervenes to corporationtheoretically, to discuss the function and affection of venture capital. As a Participant ofequity capital, in order to obtain the expected return on investment, reducing agencycosts. Before investment, venture capitalists usually provide value-added services byscreening projects, participated in supervision and management after investment.Sequentially enhancing the intrinsic value of the invested enterprises. On the other hand,in the capital markets, in order to maintain and improve their brand reputation, ventureinvestment makes its invested company’s IPO price to close to its intrinsic value.Sequentially enhancing the market value of the investment enterprises.Then, this article lists281companies of Shenzhen GEM as a sample, mean andstepwise multiple regression testing to the sample data, the test results deem that thedifference is not remarkable between a risk-free investment support listed companies andwithout venture-backed companies, in the IPO discount rate, yield after three months of issue, the issue price-earnings ratio, Tobin’s Q, and the finacial performance after listingfour years. The multiple regression Conclusion also believes that the risk investmentindicator of corporate value is not remarkable. The testing of this article empirical modeldose not supports the theory of the certification/supervision.Finally, under the above theoretical and empirical analyzing, according empiricalfindings, analyzing the reasons for this conclusion. Presenting suggestions according thereasons. It is a important significance to increase the development of China’s ventureinvestment career, to improve a multi-level capital market, and boost the development ofSME in China. |
