The Impact of Venture Capital on the Growth of Small- and Medium-Sized Enterprises in Agriculture

Table 1

Description of variables and values assigned.

Variables		Symbol	Description
Dependent variables	R&D investment intensity	RDINV	Expenditures by a firm on its research and development divided by the firm’s sales.
	Operating profit margin	OPGR	It is calculated by dividing the operating profit by total revenue.
	Rate of return on net assets	NAIR	A ratio of net income to the average total assets.
	Operating income growth rate	OIGR	Ratio of increase in operating revenue of current period to prior current period.
	Growth rate of total assets	TAGR	Ratio of increase in total assets to total assets.
	Cash flow ratio	CASHCL	Ratio of net cash flow from operating activities to incur debts.
	Current ratio	CR	Ratio of current assets to current liabilities.
Independent variables	Context of venture capital	DumVC	DumVC = 1 if the names of top 10 shareholders including “entrepreneurship investment,” “venture capital,” and “science and technology investment,” or a venture capital share of more than 5%, otherwise 0.
	Degree of participation of venture capital	DumVC1	DumVC1 = 1 if the share ratio of venture capital ranges between 5% and 15% (inclusive of 5% and 15%), otherwise 0.
		DumVC2	DumVC2 = 1 if the share ratio of venture capital ranges between 15% and 25% (inclusive of 25%), otherwise 0.
		DumVC3	DumVC3 = 1 if the share ratio of the venture capital ranges between 25% and 35% (inclusive of 35%), otherwise 0.
		DumVC4	DumVC2 = 1 if the share ratio of venture capital is greater than 35%, otherwise 0.
Control variables	Total assets	TA	Total assets of enterprise.
	Enterprise liabilities	ALR	Ratio of total liabilities to total assets.
	Ownership structure	Zindex	Ratio of the percentage of the first major stockholder to the percentage of the second major stockholder.
	Time span	Time	Time it takes for a SME to go IPOs from start-ups.