Impact Of Venture Capital Research Articles

The Impact of Venture Capital on Innovation Investment of Listed Manufacturing Companies—Based on the Mediating Role of Financing Constraints

The Impact of Venture Capital on Innovation Investment of Listed Manufacturing Companies—Based on the Mediating Role of Financing Constraints

The Impact of Venture Capital on Technological Innovation Performance

In the context of increasingly fierce global trade competition, vigorously developing innovation and accelerating the construction of an innovative country is the key to an invincible competitive position. This paper takes the companies listed on GEM from 2010 to 2017 as samples. After eliminating the problem of sample self-selection by combining propensity score matching method, this paper adopts differential model to study the impact of venture capital heterogeneity on technological innovation performance. The results show that: the participation of venture capital promotes the improvement of technological innovation performance, and the performance is better; The equity nature, investment term and investment mode of venture capital have positive effects on technological innovation performance. In addition, the further research proves that the impact of venture capital on innovation performance is persistent, and there is a pre-investment screening mechanism of venture capital. This paper is not only expected to enrich the literature of venture capital on enterprise technological innovation, but also to provide a basis for the government to stabilize the stability of the venture capital market and play the role of venture capital in promoting enterprise technological innovation, which has great practical significance.

Modeling the Impacts of Venture Capital Investment on Firm Innovation

Taking firms listed on the Chinese Growth Enterprise Market (GEM) in 2008–2017 as the sample, this study investigates the impact of venture capital (VC) investment on Chinese firm innovation using propensity score matching and a difference-in-differences (PSM-DID) model. The results show that, overall, firms’ innovation inputs and outputs do not show obvious enhancement due to VC entry, but instead show a strong and then weak inhibitory effect. VCs have heterogeneous impacts on firm innovation; that is, compared to other types of firms, firms with technology-dependent characteristics and firms whose actual controllers are experts in the same industry can effectively mitigate the adverse impact of VC on innovation inputs and gradually promote growth in the quantity and quality of the innovation outputs after the second year of VC entry. This study not only reveals the impact of VC on firm innovation activities in the Chinese capital market but also provides empirical evidence to help improve the financial innovation service system and the use of the capital market to promote innovation in China.

About the Application of Computer Technology in Internet Finance -- based on the Analysis of the Impact of Venture Capital on Capital Overoffering of listed Companies in Financial Investment

With the further development of computer technology, the era of Internet finance has arrived. Computer technology plays an important role in promoting the development of Internet finance and has also become an important basis for the development of Internet finance. The application of computer technology is conducive to the further improvement of the Internet financial system and the better promotion of transaction efficiency. However, there are also many risks in this process. In the field of financial investment, venture capital plays a very important role in the overoffering of listed companies. In this regard, we should not only improve and upgrade the computing technology, but also control the risks existing in the Internet finance. Therefore, this paper mainly discusses the application of computer technology in Internet finance, and from the perspective of the impact of venture capital in financial investment on capital overoffering of listed companies for in-depth discussion.

The Impact of Venture Capital on the Growth of Small- and Medium-Sized Enterprises in Agriculture

Small- and medium-sized enterprises (SMEs) are considered to have potential innovation capabilities and can create new market opportunities. Venture capital can financially support entrepreneurial activities for economic growth and governs and nurtures the growth of the SMEs. The aim of this study is to investigate the influence mechanism of venture capital on the development of SMEs in agri-food industry. Based on the enterprise growth theory, this study constructed an evaluation model, consisting of technological innovation, profitability, development capability, and solvency, to examine the effect of venture capital on the growth of agricultural SMEs. Using data of 40 agricultural SEMs from the SME and ChiNext boards in China, the empirical analysis has been conducted with the multivariate regression analysis method. The results show that the venture capital can significantly improve the technology innovation, profitability, and growth ability of SMEs. For the solvency of SMEs, the promoting role of venture capital is not obvious. Finally, the practical implications of this study for venture capitalists, entrepreneurs, and regulators are discussed.

区域异质性视角下风险投资对绿色技术创新的影响研究

区域异质性视角下风险投资对绿色技术创新的影响研究

Coaches or Speculators? The Role and Impact of Venture Capital on Executive Compensation in Chinese Listed Companies

ABSTRACTIn this paper, we utilize a panel dataset that covers 1245 listed companies which accomplished their IPO during 2006 to 2014 in China to investigate the impact of venture capital (VC) firms on executive compensation, equity incentive and pay-performance-sensitivity. We make several key findings: First, we find the presence of VCs can significantly raise the executive compensation. Second, high reputation VCs and private VCs increases the likelihood of granting executive equity incentives, whereas foreign VCs are significantly negatively related with executive equity incentive. Third, the pay-performance sensitivity of government VCs and foreign VCs is significant on stock return (RET) whereas insignificant on accounting performance (ROA). Moreover, the increasing VCs share in portfolio companies enhance the pay performance sensitivity on RET. Our results show that before VCs final exiting their post-IPO portfolio companies in China, VCs’ impact on executive compensation are more consistent with grandstanding theories and intending to provide higher cash compensation to encourage executives to raise the companies’ stock price, which is indicating VCs’ changing role from a coach into a speculator after the portfolio companies’ IPO.

The Impact of Venture Capital on GEM Companies’ Deviant Strategy

From the perspective of resource-based theory, agency theory and signal transmission theory, this paper examines the impact of venture capital on the deviant strategy of enterprises by studying the data of GEM listed companies from 2009 to 2016. The study finds that there is a smaller deviant strategy in companies supported by venture capital than not supported. Through the further analysis of venture capital, this paper finds that the impact of specific characteristics of venture capital on corporate deviant strategy is more significant: private and state-owned background characteristics of venture capital, compared with foreign investment background characteristics of venture capital, the companies supported by the former two own smaller deviant strategy; the enterprise supported by venture capital of alliance investment characteristics, phased investment characteristics, late entry into the enterprise characteristics owned smaller deviant strategy.

The impact of Venture Capital on Independent Innovation of SMEs

The impact of Venture Capital on Independent Innovation of SMEs

Exploring the innovation strategies of young firms: Corporate venture capital and venture capital impact on alliance innovation strategy

We investigate how governance structure and power influence alliance exploration strategy. Adopting a real options perspective and the agency view, we suggest that innovation strategies differ based on the firm's governance authority. We find that the motivations of corporate venture capitalist firms, venture capitalists, and firm founders may have an impact on the formation of exploratory alliances among adolescent firms. Using a sample of 122 adolescent firms, we examine the influence that governance structure has on the firm's alliance portfolio and innovation potential. While the influence of corporate venture capitalist firms alone do affect alliance formation strategy, corporate venture-backed firms with founders having high influence (knowledge or ownership in the firm) are more likely to form innovation-focused alliances. In contrast, venture capitalist-backed firms tend to avoid innovation-focused alliances, preferring more exploitive ones, even when founders have high influence within the firm.

Worldwide venture capital, intellectual property rights, and innovation

This study, based on the historical data of venture capital (VC) investment and patenting for 99 countries and 83 industries, explores the effects of VC investment on firms’ innovation in different intellectual property rights (IPR) environments worldwide, utilizing large data sets and various empirical models. Our negative binomial and panel data analysis presents the significant and positive impacts of VC investment and IPR parameters on firms’ innovation, controlling for cultural, regulatory, and economic and market conditions of the business environment. However, VC investment is more effective in weaker IPR environments. This effect is robust to a number of different specifications for endogeneity, among other things. The economic effect is pronounced: the impact of VC on patents is up to five times more pronounced between the weakest and strongest IPR regime in the sample.

The Impact of Venture Capital on the Life Cycles of Startups

How do VCs select startups to fund over multiple rounds? To study this question, I develop a dynamic two-sided matching model of VC funding. Using a hand-collected database including both VC-funded and non-VC-funded startups, I estimate the joint determinants of investment selection and the effects of post- investment influence in a Bayesian framework. The results show that selection depends on startups’ quality and VCs’ influence – VCs may choose to invest in a startup with lower quality if their subsequent impact is large. Importantly, previously funded startups are of higher quality and thus are more likely to get additional funding. A simulation experiment shows that initial random differences in startups can magnify significantly under the joint effects of the selection and influence of VC funding.

The Impact of Venture Capital on the Financial Structure of Belgian SMEs

The objective of this research is to investigate the impact of the deduction for venture capital (deduction of the notional interests) on the structure of financing of Belgian SMEs. The tests of hypotheses conducted on a panel sample of 1,176 companies point out that firms rely more on self-financing since the introduction of the deduction for venture capital. Moreover the paper highlights that firms limit the use of long-term financial debts. Finally, the econometric model allows to clearly identify the negative impact of the deduction for venture capital on the global degree of debts.

The Impact of Venture Capital on the Persistence of Innovation Activities of Swiss Start-Ups

In this study we investigate the impact of early stage venture capital on innovation activities of Swiss start-ups. This is done based on a cohort of start-ups that is representative of all firms founded in Switzerland in 1996/97 as recorded by a census of the Swiss Federal Statistical Office for this period. We analyze not only the impact of early stage venture capital on innovation performance 3 years after firm foundation but also 6 and 9 years after firm start, respectively, for those firms that survived so long and reported continuously innovation activities (persistence of innovation). The results support neither the hypothesis of a positive impact on initial innovation activities nor the hypothesis of a positive time-persistent effect on innovation performance of start-ups.

The Impact of Venture Capital on Funding Outcomes in the Alliance Market.

In this work, we examined the impact of venture capital involvement in the alliance markets by exploring two questions: does venture capital involvement tend to improve access to the alliance marke...

Effect of venture capital and government support on the performance of venture firms in Korea

This paper examines the effects of venture capital and government support on venture firms within the context of Korea. First, in the midst of an underdeveloped venture capital industry, it is necessary to understand if venture capital helps venture firms gain a fast Initial Public Offering (IPO) and increase financial performance. Second, this research examines if government support influences the IPO and financial performance of a firm among venture companies. We used a sample of Korean 727 venture firms to employ regression and survival analyses based on the types of dependent variables. Venture-capital-backed firms exhibited relatively faster performance growth and achieved faster IPO rates, although starting with low profitability as a startup. In addition, government support presented no impact on the financial gains and the IPO speed of a firm. This finding implies that Korean venture firms (despite a less-developed venture capital industry) have enjoyed a similar venture capital impact of a highly advanced venture capital industry. Regarding government support, government-subsidized firms exhibited a non-significant improvement of financial performance and a lowered IPO achievement. Policy implications dealing with a less mature venture capital industry are discussed.

The Impact of Venture Capital on Family Businesses: Evidence from Spain

We analyze growth in family and non-family Spanish venture capital-backed firms. When the venture capital firm (VC) does not hold a majority stake, the usual risk aversion attitudes in family firms may lead to conflicts between the management cultures of the existing and new shareholders, which may affect growth. We find lower firm growth after the initial round in family firms only when the investor holds a minority stake. Our results may explain the under-representation of family firms in VC portfolios and highlight the need to align the objectives of family managers and VC investors before the initial VC round.

Venture capital e attivitŕ brevettuale delle giovani imprese italiane ad alta tecnologia

The aim of the paper is to conduct an empirical analysis of the impact of VC (venture capital) funding on the innovation output of new technology-based firms in terms of their patenting activity. In particular, we compare the patenting rates of investee and non-investee high-tech firms. To investigate whether VC investments spur patenting activity, we consider a unique longitudinal dataset composed of one hundred and ninety- one Italian firms operating in high-tech manufacturing industries. We estimate different econometric models on panel data, controlling for factors beyond VC that could influence a firm’s patenting behaviour, such as the founders’ human capital and the use of other financing sources. The results of the analysis show that VC investments have a positive impact on successive patenting activity and that prior to receiving VC, the patenting propensity of the investee firms was no higher than other firms.

Listing Foreign Firms on Nasdaq and NYSE: Impact of Venture Capital and Research Institute

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.

Impact of Venture Capital on IPO Timing and Operation Performance: Evidence from the HK GEM

Abstract The results from testing HK growth enterprise market show that venture capital exerted significant influence on initial public offerings (IPO) timing and performance. The influence on IPOs performance is positive when the factor such as earning management is considered. But venture capital could not prevent the IPOs from aggrandizing investment demand. There are also immoderate financing and inefficient investments in the VC-backed IPOs. In addition, the evidences also suggest that underwriter, CPA firms' and venture capital have a joint effect on the performance of IPOs. Venture capital may help underwriter and CPA firms to affirm the future of IPOs and reduce information asymmetries between them and IPOs.