The Role That Venture Capital Plays in the Sustainable Development Ability of Companies Listed in the GEM: Based on the Perspective of Corporate Governance

In this paper, we choose IPO companies listed on GEM from 2009 to 2012 as samples, and test the relationship between venture capital, corporate governance and the sustainable development. We find that venture capital helps promote the sustainable development of the invested enterprise, and the more shares the venture capital holds, the more obvious the effect is; the duality and complete organizational structure help to promote the sustainable development ability of the invested company; venture syndication and independent director proportion are negatively related to the sustainable development ability; equity restriction ratio, set-up time of the listed company and the period of VC existence have no significant relationship with the sustainable development ability. This paper introduces corporate governance as the intermediate variable to the dynamic environment, which can make up for the deficiency of the existing research and perfect the related theories.