The Influence of the Role Positioning of Investment Institutions on the Value of Start-Up Enterprises from the Perspective of Network

Tong Liu, Shiyou Qu and Christopher M. Scherpereel
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Tong Liu: School of Management, Harbin Institute of Technology, Harbin 150001, China
Shiyou Qu: School of Management, Harbin Institute of Technology, Harbin 150001, China
Christopher M. Scherpereel: The W.A. Franke College of Business, Northern Arizona University, Flagstaff, AZ 86001, USA

Sustainability, 2020, vol. 12, issue 2, 1-19

Abstract: Based on the relevant data of joint investment from 2013 to 2017, this paper constructs a multivariate regression model, introduces the social network analysis method and the Bonacich Power Index to quantify the network attribute indicators of investment institutions, and empirically tests the influence of the role positioning of investment institutions on the value of start-up enterprises from the perspective of network. The research results show that the network centrality (relative centrality, closeness centrality) and the structural hole constraint of the joint venture capital network, as well as the leading and following investment position of investment institutions have a significant impact on the value of start-up enterprises. Additionally, the more central in the joint venture capital network the investment institutions are, the higher value of the start-up enterprises supported by them have; the more structural holes the investment institutions occupy, the higher value of the start-up enterprises supported by them have; the more prominent the leading position of the investment institutions is, the higher value of the start-up enterprises supported by them have. While, there is a negative relationship between the following investment position of investment institutions and the value of start-up enterprises supported by them.

Keywords: joint venture capital network; network centrality; leading status; following status; start-up enterprise value (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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