Impact of Venture Capital's Participation on Information Disclosure of Listed Companies

• 1、School of Economics and Management, Southeast University, Nanjing 211189

Abstract：In recent years, with the establishment and development of small and medium-sized panels and GEM in Chinese capital market, an increasing number of listed companies with Venture Capital background emerge in China's stock market including main board market. Venture capital is becoming one of the major participants in China's capital market. According to relevant empirical studies, venture capital with the characteristics of outstanding management team and advantage of expertise and human resource can play an active role in promoting company values and an effective role of monitoring corporate governance and this is a positive signal transmission to capital market. It is obvious that the impact of varied institutional investors on the survival and development of companies cannot be generalized, so heterogenicity study is especially important to identify and attract institutional investors of high quality. So written from a venture capital's perspective, this paper intends to study the impact of its participation on information disclosure. The empirical test based on China's listed companies' data from Year 2009 to 2011 enriches studies of venture capital's participation function. The study indicates that quality of information disclosure is obviously higher in companies with venture capital background than in those without and the higher the level of venture capital's participation, the higher the level of significance is.

Keywords： Corporate Governance Venture Capital Information Disclosure Signal Transmission