The Empirical Research On The Role Of Risk Investment During The Growth Process Of Gem Companies In S Province

In recent years,with the strong support of the Government on the GEM enterprises,the management system of GEM enterprises has been improved,the GEM-sized enterprises are playing an increasingly important role in China's national economic development and production and life in various aspects.At the same time,due to the continuous rise in the price of various resources,especially in the context of accelerating industrial transformation and upgrading of China,the GEM enterprises must change the traditional mode of development,from labor intensive to technology intensive transition.In this process,due to the GEM enterprise scale,management confusion and other internal and external factors,coupled with the pressure of external economic environment changes,in the development of process GEM enterprises are facing problems from capital and innovation and other aspects of the problem.GEM enterprises need to solve the shortage of funds,lack of innovation and the ability to provide effective information to the decision of the way,that is why venture capital came into being,venture capital is a kind of equity investment by professional investors to the potential of enterprises.According to the research,enterprise risk investment leads to higher risk;through scientific review and decision-making can effectively reduce the asymmetry of enterprise investment information.The model can disperse the investment risk,the market investment and financing mechanism and the social network resources are able to participate in the daily management of enterprises.Therefore,the combination of venture capital and GEM-sized enterprise growth,system analysis of its impact mechanism,to deepen the understanding of the risk investment,and to provide a theoretical basis for the development of China's GEM enterprises,will achieve their healthy and stable development.This paper first introduces the basic concepts of venture capital and the relevant theoretical basis.From the actual development and the constraints of development factors of China's SME,the theory analyses the relevant mechanism of the risk of investment in GEM enterprises to ease financing,to enhance innovation ability,and to promote the growth of the phase.Finally,based on the financial data of the listed companies on the GEM,the empirical study on the actual role of venture capital is made.The results show that venture capital enterprises with venture capital background are obviously higher than calm investment enterprises in long-term capital,R & D costs accounted for operating income percentage and growth ability index aspects should engage in;accept different degrees of risk investment of GEM enterprises long-term capital,R & D investment and growth ability index changed little,but appropriate shareholding ratio is conducive to the role of risk investment,our country risk investment shareholding ratio is generally low,hindering the investment risk to the GEM enterprise development.Therefore,although the venture capital is conducive to the development of GEM enterprises,but there are still deficiencies.