Abstract:With 978 companies of GEM and SMEs in China from 2012 to 2014 the object of study, this paper investigates the impact of accounting conservatism on listed companies in the context of venture capital. The results show that venture capital significantly affects the level of on accounting conservatism. Compared with the listed companies without venture capital incorporated, the listed companies with venture capital background are characterized with lower degree of accounting conservatism, that is, the existence of venture capital institutions as shareholders of the company helps to reduce the accounting conservatism of the target company to a certain extent. It may not take into account all the company's losses, with its profits likely to be overvalued. Listed companies should face up to the impact of venture capital institutions, and should pay particular attention to the prevention and control of its negative impact.