Economic Policy Uncertainty and Syndication: Evidence from China’s Venture Capital Market

Huilan Qi, Hui Fu, Jun Yang and Wei Ai

Emerging Markets Finance and Trade, 2024, vol. 60, issue 14, 3431-3457

Abstract: This study investigates how economic policy uncertainty (EPU) impacts the syndication behaviors of venture capital firms (VCs). Analyzing data from China, we find that EPU boosts the likelihood that VCs take syndicated investments. When facing great EPU, compared with their domestic and private counterparts, foreign and state-backed VCs exhibit a greater propensity for syndication, particularly in collaboration with VCs from distinct capital backgrounds. Further, EPU reduces VCs’ risk-taking tendencies and exacerbates inadequate information exchange in the market, thereby making VCs more inclined to syndicate their investments. Finally, EPU adversely affects VCs’ exit performance, but syndication helps alleviate this impact.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/1540496X.2024.2353105 (text/html)
Access to full text is restricted to subscribers.

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:mes:emfitr:v:60:y:2024:i:14:p:3431-3457

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MREE20

DOI: 10.1080/1540496X.2024.2353105

Access Statistics for this article

More articles in Emerging Markets Finance and Trade from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().