The impact of venture capital on investment performance

In the existing capital market, Listed companies still have more serious underinvestments and overinvestments, as well as other inefficient investment phenomena.The government strongly supports venture capital institutions, so that venture capital institutions have been significantly developed.With the advent of venture capital institutions, many scholars have begun to study its impact on the capital market, including the question of whether, can the involvement of venture capital institutions effectively alleviate the problem of non-investment efficiency of listed companies?This article introduces the concepts of venture capital and inefficient investment.Secondly, through the role of venture supervision to reduce the conflict of the Trustee, as well as the use of its certification function to reduce the degree of information asymmetry between the company and external investors, to slow down corporate financial restrictions and abuse of free cash flow.