Venture Capital Investment and the Post-IPO Performance of Entrepreneurial Firms: Evidence from the People's Republic of China

Di Guo, Kun Jiang () and Xiaoting Mai ()
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Kun Jiang: Business School, University of Roehampton
Xiaoting Mai: Faculty of Business and Economics, University of Hong Kong

Asian Development Review, 2015, vol. 32, issue 1, 113-141

Abstract: We examine the effects of venture capital (VC) investment on the performance (measured by return on assets, return on equity, and Tobin's Q) and growth (measured by growth of total sales and total number of employees) of entrepreneurial firms in the People's Republic of China (PRC) after an initial public offering (IPO). Firm-level panel data analysis shows that VC investment contributes to the long-term performance and growth of entrepreneurial firms after an IPO. Meanwhile, we observe a significant and positive relationship between corporate governance of firms and VC investment. However, we do not find that experience or specialization of VC firms influences the effects of venture investment on post-IPO performance or growth of entrepreneurial firms in the PRC.

Keywords: China; venture capital investment; entrepreneurial firms; post-IPO (search for similar items in EconPapers)
JEL-codes: F21 G30 G38 L25 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (4)

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