The Impact Of Government Guidance Funds On The Investment Behavior Of Venture Capital Institutions

The investment of venture capital institutions can provide financial support for the growth and development of entrepreneurial enterprises,which is an important factor in promoting technological innovation,transforming technological advantages into competitive advantages,driving economic development and enhancing international competitiveness,and also has great significance in promoting national economic growth and increasing employment.However,due to the existence of information asymmetry in the capital market,the main goal of many venture capital institutions is to maximize the economic return on their investments,and therefore their preference is to invest in companies with a lower degree of risk,less affected by information asymmetry and enjoying favorable environmental conditions.In contrast,government-guided funds are established to mitigate capital market failures resulting from the limited supply of venture capital,and they aim to provide capital to companies that are subject to more severe information asymmetries and higher investment risks.Therefore,it is necessary to analyze in depth the impact of government-guided funds on the investment behavior of venture capital institutions and to explore related policy improvement directions.The thesis firstly comprehensively combed the relevant literature on government-guided funds and investment behavior of venture capital institutions,and then analyzed to study the influence of government-guided funds on the investment behavior of venture capital institutions with government intervention theory,signaling theory and incentive theory,and the thesis took venture capital institutions that made investments in China from January 2017 to December 2021 as a sample,and mainly studied the following contents:firstly,the Influence of government-guided fund participation and guidance,risk compensation and linkage complementarity on the investment behavior of venture capital institutions and the moderating effect of the degree of marketization are deduced,and research hypotheses are proposed and research theoretical models are established respectively.Based on the theoretical model,we also design variables and conduct empirical analysis using venture capital data to verify the research hypotheses.The results of the study show that,firstly,government-guided fund participation positively affects the investment scale,investment stage and investment industry of venture capital institutions.Government-guided funds share the risk for venture capital institutions,and there is a significant positive effect of government-guided fund risk compensation on the investment scale,investment stage and investment industry of venture capital institutions.Government-guided fund linkage and complementarity promote venture capital institutions to expand their investment scale and increase the probability of investing in early-stage and high-tech project enterprises.Second,the degree of marketization has a positive moderating effect on the investment scale and investment industry of government-guided funds and venture capital institutions.Compared with existing studies,the main contributions of this paper are as follows:first,we analyze the effects of different dimensions of government-guided funds on the investment scale,investment stage,and investment behavior of venture capital institutions;second,we innovatively analyze the moderating effect of the degree of marketization on the investment behavior of government-guided funds and venture capital institutions.