Research On The Impact Of Venture Capital To Corporate Profit And Dividend Policy Based On Empirical Evidence Of Listed Companies Of GEM

In China, The economy came to the new balance, what we care about is not just about number, but the quality. China venter capital not only alleviate the shortage of funds for small corporate, but also promoting the rapid development of high-tech industries, with the China capital opening, the academic pay more attention on this issue, venture capital doesn’t exist that much long, but they do have rapid development. Most scholar research is about how the venture influence the company before the IPO, there don’t have much report about the venture influence after the IPO, This article draws on domestic and foreign scholars’related work about the study on the relationship between venture capital and corporate profit and venture capital and dividend. It’s status to analyze and research this subject of GEM listed companies in China.First, this article define the concept of venture capital and corporate profit and dividend policy. Then analysis these correlation, which lay foundation of theoretical analysis and empirical conclusion, in theoretical analysis we analysis how the venture capital influence the corporate profit, and the relationship between dividend policy and venture capital, Then, this paper proposes the research hypotheses on the basis of prior theoretical analysis, build multiple regression model and define every factor which the model need. Finally, use the panel data of GEM listed companies from 2012 to 2014 through descriptive statistics and multivariate regression, in order to verify the hypothesis and draw the empirical conclusion.The empirical results found that venture capital will reduce corporate profit, when you have venture capital which is foreign institutions, compare these without foreign venture, they have lower profit. Through the dividend policy, the venture status can be found. The research results found that in China, the corporate with venture capital prefer paying dividend. So the venture capital present a short-term investor corporate profit which related by the capital system.Through the result of empirical, we provide some policy suggestions. First, in China the venture capital can’t promote the profit. So we should building a multi-level capital market, which can alleviate the shortage of funds for small corporate and broaden withdrawal of China’s Venture Capital. Second we should lead the venture capital to become long-term investor, these can benign interaction between the venture capital and the corporate, which can lay an important role in China economy. Third we found the corporate with the foreign venture capital reduce the profit, this is an issue to consider whether attracting foreign venture capital investor.