Effect of Venture Capital Exist through IPO on Enterprise Innovation : An Empirical Analysis on China’s Technological Enterprises

Abstract

Venture capital exist through IPO could improve financing conditions of enterprises and increase funding for enterprise innovation. But it also could cause the distortion of venture investors’ incentives and affect innovation performance of enterprises. Using the sample of the listed technological companies in China, considering the events of venture capital exist through IPO, the research empirically analyzed the effects of venture capital exist through IPO on enterprise innovation with the random effects panel regression and Poisson panel regression. The research documents that the offer amount of IPO, the holding period of venture capital, the number of shareholding venture capitals and the return of venture capital investment have significant positive correlation with the performance of enterprise innovation.