This study investigated how governance structure in corporate venturing (CV) impacts knowledge flows between a parent company and its new ventures. Based on agency theory, we proposed that autonomy and incentive scheme may stimulate or eliminate agency behaviors of CV programs in the knowledge transfer process, and ultimately influence the performance of new ventures. Using a sample of 61 companies in Japan and the United States, we found that autonomy may stimulate agency behaviors of CV programs by discouraging them to participate in the knowledge transfer process. On the contrary, the strategic-based incentive scheme may mitigate such agency behavior and encourage knowledge flows in CV activity. In addition, we also found the moderator effects of CV objectives on these relationships.