The Study On The Influences To Investment And Financing Behavior Of Enterprises From Venture Capital Capital

In recent years, central and local governments introduce a series of preferential policies for promoting venture capital institutions, hoping that those institutions can help better development of small and medium size enterprises. Along with industrial policy leaning, venture capital institutions spring up. The large-scale establishment of venture capital institutions, on one side, benefits the improvement of corporate governance structure and eases financing difficulties of small and medium size enterprises, thus promote the development of those enterprises. On the other side, corruption issues in venture capital and private equity investment follow close on another. This enlightens thinking: Can venture capital institutions promote enterprise development better?Considering this question, based on available literature, this thesis makes theoretical and positive analysis from the perspective of enterprise management and does empirical research by the help of data of listed companies in our country. It discusses about whether venture capital institutions have influence on over-investment of cash flow abundant enterprises and insufficient investment of cash flow lacking enterprises, standardize the investment behavior of enterprise. If venture capital institutions can make up insufficient investment for cash flow lacking enterprises, this thesis discusses how venture capital outfits help cash flow lacking enterprises get support from external funds. Further, we discuss venture capital institutions with different characteristics will bring different influences to enterprises’ investment behavior and financing behavior.This thesis has 6 chapters. Chapter 1 is introduction. It introduces the content by introducing the background information, theoretical meaning and practical meaning, research thinking, defines main concepts and organizes relevant literatures. Chapter 2 introduces current development situation in domestic and overseas investment industries and comparison of venture capital industry in our country and abroad. Chapter 3 organizes the existing investment and financing theories. On that basis, it analyzes the influences to investment and financing behavior from venture capital institutions and proposes research hypothesis of this thesis. Chapter 4 and Chapter 5 are mainly about empirical test for the research hypothesis in Chapter 3 by making proper models based on data of listed companies in our country. At last, Chapter 6 is a summary of all conclusions in this thesis and proposes some advice on policies for venture capital industry in our country.Through theory research and positive analysis, this thesis comes to the following conclusion:Firstly, share holdings by venture capital institutions can prevent over investment for cash flow abundant enterprises and make up insufficient investment for cash flow lacking enterprises. High risk is the characteristic of venture investment, some supervision practices like regularizing enterprise investment behavior is a common method for venture capital institutions to reduce investment risk. Hence, share holdings by venture capital institutions can prevent over investment for cash flow abundant enterprises and makes up insufficient investment for cash flow lacking enterprises efficiently.Secondly, share holdings by venture capital institutions, to some extent, reduce the asymmetry of information between different enterprises, improves external financing environment and thus improves enterprises’ external financing ability. Venture capital institutions are well connected, information spreading in relationship network can reduce the asymmetry of information between different enterprises efficiently, thus improves external financing environment and also debt financing equity financing.Thirdly, venture capital institutions with different characteristics will bring different influences to enterprises’ financing behavior. Different venture capital outfits have some heterogeneity and their investment management strategies are different, so the influences they brought to enterprises financing behavior are different.This thesis concludes that venture capital outfits have some facilitation impact for enterprises, so developing venture investment industry is imperative. In the end, this thesis gives some advises to develop venture investment industry in our country from the perspective of laws and regulations, system, talents, etc.