 Venture capital investors and foreign listing choices of Chinese companiesCheng Cheng and Armin Schwienbacher Emerging Markets Review, 2016, vol. 29, issue C, 42-67 Abstract: We investigate the listing choice of Chinese VC-backed companies between a domestic market and foreign stock markets. Using a comprehensive sample of 2249 IPOs of Chinese companies that went public during the 1994–2013 period, we find that companies backed by Chinese domestic VCs are significantly less likely to list abroad while those backed by foreign VCs or co-invested by foreign and domestic VCs are significantly more likely to do so. We further find that the introduction of a domestic stock market for high-tech start-ups (the ChiNext Board) significantly reduces the likelihood to list abroad. However, the effect of VC participation largely disappears after the introduction of the ChiNext Board, in that the companies backed by foreign or co-invested VCs are more likely to list domestically. Moreover, we find that VC-backed IPOs have larger issuance sizes, but we find no impact on IPO underpricing of these Chinese companies. These results on IPO outcome hold for both the full sample and a matched sample using propensity score matching. Keywords: Venture capital; Private equity; IPO listing; Emerging markets; China (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ememar:v:29:y:2016:i:c:p:42-67 DOI: 10.1016/j.ememar.2016.08.007 Access Statistics for this article Emerging Markets Review is currently edited by Jonathan A. Batten More articles in Emerging Markets Review from Elsevier |
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