 Venture capital firms' lead orientation and entry to new investment marketsXiao Hu, Jiayi Wang, Banggang Wu and Shuting Xiang Pacific-Basin Finance Journal, 2023, vol. 82, issue C Abstract: This study focuses on how a venture capital (VC) firm's lead orientation (i.e., the propensity to act as lead investors rather than follower investors in its past syndication investments) influences its decision to enter new investment markets, and how such a relationship is altered by VC firm's position in the syndication network. Based on empirical analyses that use detailed information on 11,219 investment deals in China from January 1999 to June 2016, we find an inverted U-shaped relationship between VC firms' lead orientation and the distance between the new-entered market and the existing markets. In addition, a VC firm's network centrality weakens the inverted U-shaped relationship, while the level of network constraint strengthens the main effect. To establish our findings' reliability, we conducted robustness checks using different measures and subsamples. Additionally, we employed the instrumental variable approach and the Heckman selection model to address potential endogeneity issues, further strengthening the validity of our findings. Keywords: Lead orientation; New-entry distance; Network centrality; Network constraint; Venture capital (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:pacfin:v:82:y:2023:i:c:s0927538x2300207x DOI: 10.1016/j.pacfin.2023.102136 Access Statistics for this article Pacific-Basin Finance Journal is currently edited by K. Chan and S. Ghon Rhee More articles in Pacific-Basin Finance Journal from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.