Study On The Influence Of The Participation Of VC/PE On The Operating Benefit Of Entrepreneurial Enterprises

Abstract:With the development of GEM in China, the relationship between China’s capital market and GEM is closer. It has been a hot topic focused by the academic researchers. In the light of practical situation of GEM, this paper is based on the total samples of355companies listed on GEM in China from Sept.2009to Dec.2012. Using the critical Propensity Score Matching(PSM) method, descriptive statistics and regression analysis respectively, the paper analyzes the ownership structure and the operating benefit of entrepreneurial enterprises before its quotation. It includes:(1) how does the different kind of VC/PE affect the operating benefit of entrepreneurial enterprises;(2) in the same kind of VC/PE, how does the different participation of VC/PE affect the operating benefit of entrepreneurial enterprises.Study shows that:(1) there is a significant difference between the influence of the different kind of VC/PE on the operating benefit of GEM’s enterprises. Long PE can enhance the operating benefit of GEM’s enterprises, but the Pre-IPO PE cannot.(2) in the different participation, Long PE isn’t always bring the positive affect to the GEM’s enterprises. The increase of the share-time may enhance the operating benefit of GEM’s enterprises, but the share-holding may not.(3) in the different participation, Pre-IPO PE has no affect on the operating benefit of GEM’s enterprises. Neither the share-time nor the share-holding does. The result indicates that several aspects of the capital market and GEM in China needing to be improved, which in order to provide some theoretic reference for the three sides:start-up company, PE investor and GEM supervisee.