Study on Relationship Between Venture Capital and Corporate Governance Quality-Take Chinese Listed Companies on GEM Board for Example

This article based on a lot of reading about venture capital and company's governance related literature, used rationality of board structure and perfectibility of supervisory mechanism as evaluation indices of governing quality of Chinese Listed Companies on GEM, and put the hypothesis of the relationship of venture capital and governing quality of Chinese Listed Companies on GEM. Through the screening, sorting of the disclosure information of listed companies on GEM and the design of questionnaire, this article obtained the evaluation data of venture capital holding, rationality of board structure and the perfectibility of supervisory mechanism in GEM companies, analyzed used the SPSS software for data correlation analysis and regression analysis, and researched the relationship between venture capital and governing quality of GEM companies. The result shows: there is positive correlation between venture capital holding and rationality of board structure as well as between venture capital holding and the perfectibility of supervisory mechanism, indicating venture capital is able to upgrade governance quality of the invested company and obtain high investment return through a set of effective governance mechanism.