Abstract
Using a cross-section of Nasdaq and NYSE-listed foreign companies, we examine the impact of financial and innovation variables on the registration. We find a strong association between the variables and Nasdaq. This suggests that Nasdaq-type financial stock market has a link with the enterpreneurial ecosystem. The availability of high-tech firms is strongly associated with funding and research availabilities.
Highlights
In this paper, using a cross-section of Nasdaq and NYSElisted foreign companies, we examine the impacts of venture capital financial and innovation variables on the listing of stock markets
The contibutions of the paper are 1) the venture capital is an important determinant of listings due to the support of startups, the previous studies focus on the impact of stock markets on venture capital; 2) the existing of large sophisticated financial institutions is not suffucient for startups which need a long-term-free-interest investment; 3) Nasdaq-type stock market is relevant to the growth of startups rather than NYSE-type stock market; 4) the existence of long-term-free-interest funds may fail to support startups due to the lack of technological research
The successful of emergence of startups comes from two main resources: strong research institutions and venture capital funds (Figure 1)
Summary
In this paper, using a cross-section of Nasdaq and NYSElisted foreign companies, we examine the impacts of venture capital financial and innovation variables on the listing of stock markets. The analysis confirms the key findings of prior work, including the importance of worldclass research-oriented institutions and the crucial role played by venture capitalists. The contibutions of the paper are 1) the venture capital is an important determinant of listings due to the support of startups, the previous studies focus on the impact of stock markets on venture capital; 2) the existing of large sophisticated financial institutions is not suffucient for startups which need a long-term-free-interest investment; 3) Nasdaq-type stock market is relevant to the growth of startups rather than NYSE-type stock market; 4) the existence of long-term-free-interest funds may fail to support startups due to the lack of technological research. Venture capital availability shows the funding availability for entrepreneurs with innovative but risky projects
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