Three essays on venture capital development in Asian market

亞洲市場創投基金之發展

Student thesis: Doctoral Thesis

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Author(s)

  • Lai Kuen WONG

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Detail(s)

Awarding Institution
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Award date15 Jul 2008

Abstract

The study consists of three essays on the development of venture capital industry in Asian market. The first essay, “The Role of Government in the Venture Capital Market with Asymmetric Information”, demonstrates the importance of government’s tax incentive policy and regulatory measures to alleviate the issue of asymmetric information in the venture capitalist market. In particular, the theoretical analysis suggests three possible scenarios and reveals that the government’s incentive policy and regulatory measures can significantly affect the payoff result in the entrepreneurial project. The second essay is called “Institutions and investment activities in the venture capital industry: evidence from China, Hong Kong and India”. It is an empirical study in line with the tone of the Chapter one which shows the importance of the government in the venture capital industry theoretically. The chapter aims at presenting the impacts of institutions on the VC investment activities and funding allocation in Asia. Results show that the availability of government’s financial incentive is a key determinant factor for venture capitalists to select the investment sectors and arrange the financing stages. The third essay, “Examine The Performance of Venture Backed Companies in Hong Kong IPO Market”, tends to investigate the effects of venture capitalists’ participation in IPO companies in an emerging market like Hong Kong and provide a more realistic view through an empirical testing of models on VC effects in listed companies. The result reflects that the grandstanding impact is more influential on VC-backed companies. The presence of grandstanding may moderate the certificate effect of VCs. VC-backed IPOs are not be the best IPO candidates in Hong Kong.

    Research areas

  • Venture capital, Asia