Abstract
The continuous development of the government venture capital guiding funds (hereinafter referred to as the “government guiding funds”) has provided financial support and development opportunities for the development of many small- and medium-sized enterprises (SMEs), and government guiding funds have been paid attention by more and more entrepreneurs and investors of SMEs. This paper takes the SMEs listed on the National Equities Exchange and Quotations (“NEEQ,” known as the New Third Board) as a research sample, systematically examines the factors that influence the selection of investment objects of government guiding funds, and studies the preference of government guiding funds from the aspects of financial characteristics and corporate governance of SMEs. The research results show that on one hand, ownership concentration, date of establishment, and asset size are significantly related to government guiding funds, while the return on equity (ROE), the asset-liability ratio, liquidity of assets, growth rate of main business income, and the operating net profit ratio failed to pass the significance test; on the other hand, operating profit ratio, investment interests, asset size, and the amount of investment of government guiding funds are significantly related, while investment rounds, date of establishment, ownership concentration, ROE, asset-liability ratio, liquidity of assets, and operating net profit ratio failed the significance test.
Highlights
In 2002, China’s first government guiding fund—Zhongguancun Science Park Venture Capital Guiding Fund—was established
E innovation points of this paper include the following: first, in terms of research content, the current researches on government guiding funds mainly focus on the investment mechanism and operation mode; this paper systematically analyzes the preference of government guiding funds when choosing the investment objects, which is a supplement to the research on government guiding funds
Based on the literature review and theoretical analysis, we can see the comprehensive influence of small- and medium-sized enterprises (SMEs)’ financial characteristics, corporate governance characteristics, and other factors on the investment choices of government guiding funds. ese factors influence each other and restrict each other, constituting the core influence of the investment selection of government guiding funds. erefore, this paper proposes the following hypotheses: H1: the investment choices of government guiding funds are positively correlated with the profitability of the invested companies
Summary
In 2002, China’s first government guiding fund—Zhongguancun Science Park Venture Capital Guiding Fund—was established. When government guiding funds choose to invest in SMEs, they may have certain preferences based on their own development and performance appraisal and other reasons. Erefore, this paper chooses NEEQ-listed enterprises as research samples to analyze the factors influencing the selection of investment objects of government guiding funds, so as to provide reference and guidance for the development of current investment norms of government guiding funds. E innovation points of this paper include the following: first, in terms of research content, the current researches on government guiding funds mainly focus on the investment mechanism and operation mode; this paper systematically analyzes the preference of government guiding funds when choosing the investment objects, which is a supplement to the research on government guiding funds. In terms of research method, this study of government guiding funds mainly adopts literature and theoretical research, but this paper mainly uses empirical analysis and chooses ten factors influencing the investment of government guiding funds: this research can extend the current research methods on government guiding funds
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