The Impact Of Venture Capital On Technological Innovation And Corporate Performance

Venture capital(VC)was first proposed by the United States.They usually invest in some high-tech Industries and then obtains high returns through l isting or mergers and acquisitons.With the establishment of SME board and GEM board,venture capital has become active in China.From the research of foreign scholars,most researches believe that venture capital can effectively promote the development of enterprise performance and technological innovation.However,the development of capital market in China is not mature enough,and the operation mechanism of capital market is not perfect,which is different from the national conditions.Moreover,the establishment of China's GEM is relatively late,and the empirical research content of venture capital on enterprise performance and technological innovation is less,so the research of this paper is of practical significance.Based on reading and reviewing the related literature of scholars both at home and board,this article combs the theory of the impact of venture capital on technological innovation and corporate performance.The theory that venture capital has positive effect on corporate performance has the hypothesis of "screening supervision",the theoretical basis for non-positive influence is the "adverse selection" hypothesis and "reputation effect"hypothesis.This article selects 563 companies listed on the GEM before December 31,2016 as samples.It measures the technological innovation of the enterprise from the RDR and the innovation output.And using the principal component analysis method to obtain the comprehensive performance evaluation index(Performance)as an explanatory variable,using cross-sectional data for multiple linear regression analysis,respectively,to study the impact of venture capital on technological innovation and corporate performance.Venture capital can effectively promote the improvement of enterprise R&D investment intensity,but it is not significantly negatively correlated with the number of patents owned by enterprise.This shows that venture capital can effectively increase the R&D intensity of listed companies,but it cannot effectively convert R&D into scientific and technological achievements.The results show that the risk investment has a significant negative correlation with the enterprise performance,and the problem of "adverse selection" exists in China's GEM market.Using the enterprise's total return on assets(AveRoa)and total asset turnover(AveTat)respectively measure the profitability of enterprises and operating ability,as interpreted variable robustness inspection,results show that the robust.Finally,according to the empirical conclusion of the paper,the following Suggestions are put forward:(1)Give play to the guiding role of the government and improve the policy environment.(2)Venture capital institutions should improve project screening and evaluation mechanism.(3)Continue to encourage venture capital support enterprise to increase R&D investment and accelerate the output of R&D results.But the paper still has some limitations,this paper only studies the impact of venture capital on enterprise performance and technological innovation before it withdraws from the company.Restricted by lock-up period,general VC will not withdraw immediately after the IPO(Initial Public Offerings).There is no way to know the specific withdraw time,so this paper does not study the impact of withdrawal of venture capital on companies'performance,the research content is not comprehensive enough.