The Impact Of Venture Capital On The Gem Listed Companies Inefficient Investment

Because the effectiveness of the capital market is not complete in our country, generally there is asymmetric information and principal-agent problems led to the domestic listed companies, there are some factors such as abuse of free cash flow and financing constraints lead to inefficient investment behavior, its main forms are over-investment and under-investment. The existence of inefficient investment behavior, greatly reduce the efficiency of market efficient allocation of resources.In this paper, we take the growth enterprise market in China between 2009 and 2010 listed companies during 2010-2013 data as the research object, through the establishment of the investment efficiency measurement model, research the excessive investment and enterprise free cash flow, insufficient investment and the relationship between internal cash shortfall, then from risk investment agencies shareholding, the proportion of shareholding, and whether the joint investment of the three angles, reserched the risk investment institutions in improving enterprise to excessive investment of free cash flow and financing constraints caused by issues such as inadequate investment’s role.The empirical research’s results show that the enterprise of the growth enterprise market in our country:(1) the enterprise free cash flow and over-investment exist positive correlation, and can improve enterprise risk investment of free cash flow as a result of the abuse of excessive investment; (2) internal cash gap exists in the whole of the growth enterprise market of the enterprise in the proportion is higher, at 75%, and a firm’s internal cash shortfall there is positive correlation with inadequate investment phenomenon, a background in risk investment institutions shareholding enterprises, can get more external financing, alleviate the underinvestment of caused by internal cash shortfall; (3) the risk investment institutions shareholding ratio and internal cash shortfall caused by inadequate investment behavior is significantly negative correlation, and free cash flow caused by excessive investment behavior does not exist significant correlation relationship; (4) the risk investment institutions of joint ownership with internal cash shortfall caused by inadequate investment behavior is significantly negative correlation, and free cash flow caused by excessive investment behavior does not exist significant correlation.This paper from the perspective of venture capital investment holding this, from venture capital participation on the company’s cash flow, the influence of it in improving the company because of the principal-agent problem and the problem of asymmetric information leads to the inefficient investment behavior’s role, is the role of venture capital in the field of corporate governance research deepening, also for entrepreneurial enterprises introducing strategic investors for a long time, oversee the managers of reasonable investment behavior, inhibiting the distorted the inefficient investment behavior of the proposed some Suggestions, have certain reference function.