Did Government Venture Capital Fund Innovative but Less Profitable companies? Evidence from China

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)32_Refereed conference paper (with ISBN/ISSN)peer-review

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Detail(s)

Original languageEnglish
Title of host publicationAcademy of Management Annual Meeting Proceedings 2021
EditorsSonia Taneja
PublisherAcademy of Management
Publication statusPublished - Aug 2021

Publication series

NameAcademy of Management Proceedings
Number1
Volume2021
ISSN (Print)0065-0668
ISSN (Electronic)2151-6561

Conference

Title81st Annual Meeting of the Academy of Management (AOM 2021)
LocationVirtual
Period29 July - 4 August 2021

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.

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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).

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)32_Refereed conference paper (with ISBN/ISSN)peer-review