The Impact Of Venture Capital On Corporate Financing Constraints

The quality of information disclosure,as an important channel and method for communication between enterprises and external investors,has a significant impact on corporate financing constraints.After the venture capital injection into the company,it will not only have an important impact on the financing constraints of the company,but also affect the information disclosure behavior of the company for its own interests.Therefore,it is particularly important to study the impact of venture capital on corporate financing constraints from the perspective of the quality of information disclosure.Due to the characteristics of high risk and return,venture capital prefers to invest in technology-based innovative companies with high growth and potential risks.Most of the listed companies on the GEM are technology-based SMEs.And the operating risk is high,it is difficult to obtain the financial support of other investors,and more importantly,the GEM market provides an exit channel for venture capital institutions.Therefore,based on a review of existing research conclusions and analysis of related research theories,this article uses companies listed on GEM between 2010 and 2018 as research samples to empirically study the impact of venture capital on corporate financing constraints and The role of quality of information disclosure in this,the study found that:(1)Venture capital can be directly injected into GEM listed companies to solve its financing constraints,and it can also reduce information asymmetry and agency costs through its certification and supervision/management effects,thereby alleviating corporate financing constraints,and venture capital constraints on corporate financing The mitigation effect is significant only in companies with high quality information disclosure.By comparing the impact of venture capital on financing constraints of different enterprises,it is found that venture capital has a greater effect on alleviating the financing constraints of large-scale enterprises and state-owned enterprises.(2)Due to the pursuit of high investment returns and investment reputation,venture capital will use its shareholder identity to control corporate information disclosure behavior,use internal information advantages or conspire with corporate executives to reduce corporate information disclosure,and compare with large-scale enterprises and state-owned For enterprises,the negative impact of venture capital on the quality of information disclosure of GEM listed companies is more pronounced in small-scale and private enterprises.(3)The negative impact of venture capital institutions on the quality of information disclosure of the investees ultimately weakens its mitigation effect on the financing constraints of the investees.That is to say,the total effect of mitigation effect of venture capital on the financing constraints of the invested company is less than the direct effect.Therefore,the quality of information disclosure masks the mitigation effect of venture capital on corporate financing constraints,and this screening effect only exists in private enterprises and small-scale enterprises.(4)When studying the impact mechanism of venture capital on corporate financing constraints,it was found that venture capital can significantly reduce the non-current ratio of the investee company and increase the turnover rate of the total assets of the investee company,that is,venture capital can significantly reduce corporate information asymmetry and agency cost.