IJFANS International Journal of Food and Nutritional Sciences

ISSN PRINT 2319 1775 Online 2320-7876

Venture Capital Financing and Its Effect on Corporate Corporation and Opportunism

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Dr. Debashree Souvik Jana

Abstract

This research paper delves into the intricate relationship between venture capital financing, corporate governance mechanisms, and opportunistic behaviors within firms. Drawing on a sample of 400 respondents, this empirical study employs a quantitative research design to explore the impact of venture capital financing on corporate governance practices and its subsequent influence on opportunistic behaviors. The findings reveal a significant positive association between the extent of venture capital financing and the level of corporate governance mechanisms implemented by firms, suggesting that venture capital investment is linked to a higher focus on robust governance structures. Moreover, the study demonstrates a negative correlation between stronger corporate governance mechanisms and the prevalence of opportunistic behaviors, highlighting the role of effective governance in curbing such behaviors. These findings contribute to the understanding of how venture capital financing influences corporate behavior, shedding light on the potential for venture capital to enhance governance practices and mitigate opportunistic actions. The study also underscores the importance of fostering a transparent and accountable environment within organizations to foster sustainable growth. The research provides valuable insights for both practitioners and policymakers by emphasizing the positive impact of venture capital investment on enhancing governance and curbing opportunism. This study contributes to the existing literature on venture capital, corporate governance, and opportunistic behaviors, offering directions for future research in terms of longitudinal studies, contextual factors, cross-cultural analyses, and diverse venture capital arrangements.

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