Do venture capitalists function the same: The evidence from the Chinese newest stock market, ChiNext

Beladi, H, Chao, C and Hu, M 2018, 'Do venture capitalists function the same: The evidence from the Chinese newest stock market, ChiNext', World Economy, vol. 41, no. 8, pp. 2020-2041.


Document type: Journal Article
Collection: Journal Articles

Title Do venture capitalists function the same: The evidence from the Chinese newest stock market, ChiNext
Author(s) Beladi, H
Chao, C
Hu, M
Year 2018
Journal name World Economy
Volume number 41
Issue number 8
Start page 2020
End page 2041
Total pages 22
Publisher Wiley-Blackwell Publishing
Abstract We examine the role of venture capitals (VC) in Chinese entrepreneurial firms surrounding their initial public offerings (IPOs) on ChiNext. We find VCs are more likely to invest in entrepreneurial firms close to their registered location. Unlike developed countries, Chinese VCs cannot significantly improve firms' corporate governance and operating performance on ChiNext. These results indicate these VCs are more free-riders rather than value-added investors. The empirical findings suggest Chinese government should restructure ChiNext or reform primary market regulations to encourage VCs to make more value-added activities and improve the financing environment of small to medium-sized enterprises. VCs are still new on the ChiNext.
Subject Applied Economics not elsewhere classified
Keyword(s) China
ChiNext
corporate governance
entrepreneurial firm
venture capital
DOI - identifier 10.1111/twec.12534
Copyright notice © 2017 John Wiley & Sons Ltd
ISSN 0378-5920
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