Analysis on the Impact of Venture Capital for SMEs in the Process of IPO
|Keywords||Venture Capital SMEs Asymmetric Information IPO|
After a 30 years of rapid economic growth, resource scarcity and livelihood security of growing, our economy is facing urgent requirements of the industrial restructuring and upgrading, this high-tech enterprise by developing strategic emerging industries represented is very important. However, the early development of high-tech enterprises, due to their own risk and face greater difficulties in financing, cash-strapped enterprises greatly limited the reality of technology R & D investment and technological achievements in production. At this point the risk of investment, as a new financing channels, to some extent can make up for capital markets and credit markets early on lack of support SME development issues.From the perspective of asymmetric information to study the venture capital for SMEs listing process. First of all, this theory can be proved as a listed venture capital financing and bank loan financing supplementary channels. Second , through participation in the management of SMEs can reduce both investment and financing problem of asymmetric information, thus mitigating the problem of financing SMEs. Finally, empirical research, venture capital for SMEs is found that the intrinsic value and market value of both improved. Included in value, venture capital for SMEs by participating in internal management, improve its governance structure, develop entrepreneurship, to integrate the resources, to provide value-added services than other funds, enhancing the overall profitability of SMEs; in the market value, venture capital investment because of the rigorous screening and before the close after the investment oversight process in the SME market provides an important third-party certification, and venture capital through its good reputation to the outside world a positive signal is passed to help small and medium companies gain greater market acceptance. In this paper, from 25 June 2004 to 31 December 2010’s listing of 684 samples between the small and medium enterprises as the research object, according to whether the venture capital sector participation in the classification to study the involvement of venture capital institutions, and the growth of sample enterprises and listing of the situation of a comparative analysis of relevant data in the difference of test and regression analysis found that, at present China’s venture capital for SMEs to enhance the role of the intrinsic value is not obvious, even after the listing appears in corporate profit growth rate was significantly decreased features. Listed by studying the process of SMEs, we find that venture capital can play a role in some degree of certification, those who venture-backed companies have issued earnings ratio was significantly higher than the background of no venture capital investment enterprises.Based on theory, empirical analysis of the results of this paper could explain that they are profit-driven venture capital in China phenomenon, the positive impact of the listing process of SMEs is limited, this paper gives some policy recommendations.