Investment Behaviors and Performance of Government - Sponsored Venture Capitals:Evidences from SME and ChiNext Boards
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| Title | Investment Behaviors and Performance of Government - Sponsored Venture Capitals:Evidences from SME and ChiNext Boards
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| Author | Yu Yan, Luo Wei, Lee Yi-tsung and Zhu Qi |
| Organization | Guanhuan School of Management, Beijing University;J.P. Morgan First Capital Securities Co., Ltd |
| Email | ytlee@gsm.pku.edu.cn |
| Key Words | Government-sponsored Venture Capital; Investment Behavior; Holding period; Investment Return |
| Abstract | This paper analyzes the relationship between venture capitals'(VCs) ownership and their investment behaviors and performances. We find that, no evidence shows that government-sponsored VCs (hereafter GSVCs) prefer entering the firms earlier, and provide significant value-added on firms’ innovation. Meanwhile, compared to private sponsored VCs, GSVCs have longer holding period, higher cost and lower return, but after the reformation of non-tradable shares, they enjoy shorter holding period, lower cost and higher return. GSVCs also enjoy more benefits when they enter invested company in late period. These findings show that GSVCs’ behaviors in line with the expectations of the private interests hypothesis. |
| Serial Number | WP558 |
| Time | 2013-11-20 |
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