The Influence Of Equity Participation In Venture Capital Funds On The Operating Performance Of Listed Companies

With the development of China’s economy,corporate venture capital(CVC)industry grew rapidly.More and more companies choose to participate in venture capital funds,both in terms of numbers of investment projects and investment amount is rapidly increasing.This article takes the background of the events of Chinese listed companies’ equity investment in venture capital in recent years as a background to study the impact of listed companies’ equity investment on the long-term and short-term operating performance of their own companies,and further explore their impact mechanism.This article selects samples from the PEVC database of the WIND database the Chinese listed companies that have participated in the venture capital funds from 2011 to June 2019 as the research object,and matched the samples of listed companies that not participated for comparison,respectively through the event research method and the intermediary mechanism test model analyzes the changes of operating performance in short-term and long-term.The study found that: Firstly,the short-term stock market price will fall during the equity investment fund event period,the overall excess return will be negative,and investors in the market will negatively evaluate the overall short-term.Among them,the single-day change is only significantly positive on the day of participation.Secondly,after 4 years of equity participation in the venture capital funds of listed companies,the operating performance of the listed companies with equity participation in the venture capital funds is significantly better than that of the listed companies without equity participation.In addition,financial constraints play a negative intermediary role in the relationship between a listed company’s investment and its operating performance.That is,the listed company’s investment will exacerbate the degree of financing constraints,and financing constraints will reduce the improvement of operating performance.This paper studied the influence of equity participation in venture capital funds of listed companies on their own operating performance,enriched the theoretical research on corporate venture capital from the theoretical level.In terms of research methods,combining the event research method and the intermediary mechanism test model,and using high-quality data for research,we have reached good conclusions and provided references for listed companies and other relevant stakeholders to make decisions in the future.Finally,combined with the research conclusion,this paper puts forward the corresponding countermeasures and suggestions to the government,the listed companies and the investors.