Venture Capital Investment and the Post-IPO Performance of Entrepreneurial Firms: Evidence from the People’s Republic of China
Guo, Di; Jiang, Kun; Mai, Xiaoting | April 2015
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.
Citation
Guo, Di; Jiang, Kun; Mai, Xiaoting. 2015. Venture Capital Investment and the Post-IPO Performance of Entrepreneurial Firms: Evidence from the People’s Republic of China. © Asian Development Bank. http://hdl.handle.net/11540/4090. License: CC BY 3.0 IGO.Keywords
Climate
Climate change
Climate impacts assessment
Global climate change
Rural Development
Rural Development Projects
Rural Development Research
Aid And Development
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