Study On The Effect Of Venture Capital Participates In The Startup Enterprise Of Corporate Govenrance

Venture capital industry in China has obtained the good development in recent years,especially growth enterprise market (gem) to start later, venture capital institutions quantityand amount are growing very rapidly. Venture capital focus on high growth of high-techenterprises and venture capital investment tend to be involved in its corporate governancethrough the form of controlling it’s stock rights. they can providing financial support andvalue-added services, the ultimate goal is to get higher rates of return on investment. Study onthe effect of venture capital participates in the startup enterprise of corporate governance notonly has theoretical significance, will also promote the healthy and steady development ofventure enterprises, optimize the corporate governance structure and improve businessperformance, help the role of venture capital in operation and management of ventureenterprises get sufficient play.In this paper, direct at the venture capital background have or not and venture capitalholdings more or less to explore the impact of corporate governance of venture enterprisesrespectively,. First in this paper, introduced the research significance, method, purpose,combed the literature, concluded this article possible innovation points, summarizes theventure capital and corporate governance related theory. Then through the introduction of therole of venture capital, analyzes the reason of venture capital to participate in corporategovernance. In our country the gem IPO companies from2009to2012as sample, combiningthe theoretical analysis using principal component analysis and regression analysis method toempirical research. First choose three dimensions of the ownership structure, board structure,the executive incentive through the principal component analysis. To eliminate the intrinsiccorrelation between variables selected seven variables to representative corporate governancelevel. Get the final indexes to representative corporate governance level to build multivariatelinear regression analysis model combined with control variable and independent variables.Through the data processing of multiple linear regression model get more robust results. Theresults of the study showed that the participation of venture capital, how much of venturecapital proportion does affect corporate governance level of the enterprise investment. This paper verified the greater the venture capital holdings the higher the proportion ofindependent directors, and the higher consistency of independent director and the location.In general, this paper partly verified the enthusiasm of venture capital in corporategovernance, as well as provide theoretical support for the development of our country venturecapital enterprise. Facing the rapid development of venture capital market, more and moreenterprises will get the venture capital fund support. The innovation of research methods arealso for more scholars will impact on the corporate governance of venture capital theory andprovides a new research idea.