Venture Capital,equity Allocation And Enterprise Innovation Efficiency

Based on the background of China’s further reform、opening up and diversified economic development,a large number of venture capital investments have emerged in the capital market,and the number of investors and institutions making venture capital investments is increasing.At the same time,under the new normal of "three overlapping periods",technological innovation is an important driver of economic quality and efficiency,so enterprises are paying more and more attention to their own innovation capability and efficiency.Although these capital pursuing high risk and high return can help small and medium-sized enterprises with scientific and technological innovation capabilities to address issues such as insufficient funding and high business risk in technology creation activities,there is still room for improvement in China’s economic laws and regulations and regulatory system for venture capital,so it is unclear whether venture capital can positively affect the innovation efficiency of listed enterprises.This dissertation takes the listed firms on the sci-tech innovation board(simplified STAR)in China,whose purpose is to analyze the impact and its mechanism of venture capital on the innovation efficiency of listed companies from STAR.First,the dissertation explains the background and significance of the selected topic,and organizes and reviews the literature on venture capital,corporate innovation and the relationship between the two in China.Then,dividing the innovation creation activities into two major stages: R&D stage and technology transformation stage,and measure the efficiency values of the two stages using DEA-BCC model as the explanatory variables.The empirical analysis is based on the multiple linear regression model and propensity score matching model(PSM),which is different from the traditional ordinary least squares(OLS),the PSM model can address the problem of self-selection bias in the sample,meanwhile,robustness is tested by varying the explanatory variables and replacing the propensity score matching method.Finally,by establishing a moderating effect model,the influence mechanisms of ownership concentration and equity restriction in the relationship between venture capital and innovation efficiency of listed enterprises are examined respectively.The results of the study demonstrate that(1)in terms of overall,firms with venture capital involvement have significantly higher innovation efficiency,whether they are in the R&D stage or in the technology transformation stage,relative to firms with no venture capital participation,and this promotion effect is heterogeneous across industries.(2)At the R&D stage of science-oriented firms,ownership concentration has a negative moderating effect on the positive relationship between venture capital and innovation efficiency of STAR firms,that is when ownership concentration is high,STAR firms engage in centralized equity allocation,while venture capital has a weaker role in promoting innovation efficiency of firms;when firms are in the technology transformation stage,ownership concentration does not show a significant moderating effect.(3)The equity restriction positively regulates the promotion relationship between venture capital and the R&D and technology transformation efficiency of STAR firms in the R&D phase and the technology transformation phase,this implies that the contribution of venture capital to the innovation efficiency of STAR firms is increased under the equity allocation with high balance.Combining the above findings,we finally propose corresponding suggestions for enterprises on the sci-tech innovation board,venture capital industry and government departments,to develop a stable and healthy venture capital industry and effectively improve innovation capabilities and efficiencies of STAR firms,and promote the synergistic development of both parties.