Venture capital reputation and portfolio firm performance in an emerging economy: The moderating effect of institutions
Runhui Lin (),
Ya Li (),
Tao Peng () and
Hongjuan Zhang ()
Additional contact information
Runhui Lin: Nankai University
Ya Li: Tianjin Polytechnic University
Tao Peng: Sun Yat-sen University
Hongjuan Zhang: Tianjin University
Asia Pacific Journal of Management, 2017, vol. 34, issue 3, 699-723
Abstract This paper addresses the effects of venture capitalist (VC) reputation on the performance of portfolio firms, and how this works in different institutional settings. Drawing on a dataset of 519 portfolio firms from China, we found that VC reputation does significantly increase the market value of portfolio firms in both the IPO year and the subsequent years. In addition, institutions moderate the relationship between VC reputation and portfolio firm performance such that the effect of VC reputation is positive and significant given extensive rule-based institutions, but insignificant given more relationship-based institutions. Our results provide empirical support for the impact of institutional factors such as market transparency and institutional efficiency on how venture capital firms can add value to invested portfolio firms.
Keywords: Emerging economies; Venture capital; Institutional theory; Reputation; Portfolio firm performance (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s10490-016-9500-1 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:asiapa:v:34:y:2017:i:3:d:10.1007_s10490-016-9500-1
Ordering information: This journal article can be ordered from
http://www.springer. ... 29/journal/10490/PS2
Access Statistics for this article
Asia Pacific Journal of Management is currently edited by Jane Lu
More articles in Asia Pacific Journal of Management from Springer
Series data maintained by Sonal Shukla ().