Venture Capital and Corporate Governance Quality in Start-up Enterprises

The paper analyzes the role of venture capital in corporate governance of start-up enterprises. Based on the publicly released information about listed company on small and medium-sized enterprise board, the paper proves that venture capital plays an important role in corporate governance from enterprise performance's point of view. Study shows that venture capital, as a unique financing mode, helps to establish effective enterprise governance mechanism and upgrade enterprises' governance quality. This is a typical case that demonstrates positive interaction between capital market and corporate governance.