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

Hamid Beladi, Chi-Chur Chao and May Hu

The World Economy, 2018, vol. 41, issue 8, 2020-2041

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.

Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/twec.12534

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:worlde:v:41:y:2018:i:8:p:2020-2041

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0378-5920

Access Statistics for this article

The World Economy is currently edited by David Greenaway

More articles in The World Economy from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().