Venture Capital, Financial Leverage and Enterprise Performance

This paper aims to study the relationship among venture capital (VC), financial leverage and enterprise performance by empirical study, utilizing the data from China's GEM (Growth Enterprises Market) listed companies of 2010-2014. The empirical results show that: VC is positively related to enterprise performance, and financial leverage is negatively correlated with corporate performance; Moreover, further research indicates that this negative relationship becomes larger and more significant in the VC-backed firms by introducing the cross term of VC and financial leverage.