Did Government Venture Capital Fund Innovative but Less Profitable companies? Evidence from China
Research output: Chapters, Conference Papers, Creative and Literary Works › RGC 32 - Refereed conference paper (with host publication) › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
| Original language | English |
|---|---|
| Title of host publication | Academy of Management Annual Meeting Proceedings 2021 |
| Editors | Sonia Taneja |
| Publisher | Academy of Management |
| Publication status | Published - Aug 2021 |
Publication series
| Name | Academy of Management Proceedings |
|---|---|
| Number | 1 |
| Volume | 2021 |
| ISSN (Print) | 0065-0668 |
| ISSN (electronic) | 2151-6561 |
Conference
| Title | 81st Annual Meeting of the Academy of Management (AOM 2021) |
|---|---|
| Location | Virtual |
| Period | 29 July - 4 August 2021 |
Link(s)
| DOI | DOI |
|---|---|
| Permanent Link | https://scholars.cityu.edu.hk/en/publications/publication(08a21eda-7b78-4784-bd20-d6804bb2e283).html |
Abstract
Governmental venture capital (GVC) is a typical dual-purpose hybrid entity, which aims to increase social welfares as well as making profits for investors. Yet little is known about how the dual purposes shape GVC’s investment strategies that interact with private venture capital’s (PVC). Applying a two-sided matching model, we develop a structural model to examine whether GVCs invested in innovative but less profitable companies that ignored by PVCs. Using the data of Chinese VC industry in 2000-2012, we find supports for our hypotheses. These fresh results suggest that GVC commendably fulfill their social mission while pursuing economic benefits in a competitive environment. Moreover, GVCs are at least not worse than PVCs in nurturing companies in term of achieving IPO/M&A, and they support company innovation effectively in term of patent application.
Bibliographic Note
Research Unit(s) information for this publication is provided by the author(s) concerned.
Citation Format(s)
Did Government Venture Capital Fund Innovative but Less Profitable companies? Evidence from China. / Zhang, Jing; Fan, Yueqi; Liu, Ye.
Academy of Management Annual Meeting Proceedings 2021. ed. / Sonia Taneja. Academy of Management, 2021. (Academy of Management Proceedings; Vol. 2021, No. 1).
Academy of Management Annual Meeting Proceedings 2021. ed. / Sonia Taneja. Academy of Management, 2021. (Academy of Management Proceedings; Vol. 2021, No. 1).
Research output: Chapters, Conference Papers, Creative and Literary Works › RGC 32 - Refereed conference paper (with host publication) › peer-review
