On the effect of corporate performance based on venture capitalists entering the listed company´s board of directors

Venture capitalists (VC), as the main participants in China Growth Enterprise Market (GEM), more and more join the board of directors of the listed companies to participate in corporate governance, which has a significant impact on corporate performance. In this paper, the GEM-listed companies are regarded as the object and panel data related to the VC directors from the fourth quarter of 2009 to the third quarter of 2013 are collected to study the relationship between VC directors and corporate performance. Findings are as follows: (1) VC joining the board of directors, their board seats and shareholdings ratio, duration on board of directors all have a significant positive correlation with corporate performance. (2)The above results are still robust after analyzing the problems about substitution variables and singular value.