Proceedings of the 2016 International Conference on Engineering and Technology Innovations

Venture capital investment performance: Based on innovation perspective of multi-factor effect

Authors
Yan Jiang, Ye Xu
Corresponding Author
Yan Jiang
Available Online March 2016.
DOI
https://doi.org/10.2991/iceti-16.2016.30How to use a DOI?
Keywords
foreign venture capital firms, domestic venture capital firms, portfolio company performance, China, multi-factor effect.
Abstract
China's capital market is booming in recent years. Large numbers of starting-up companies are showing up, which attracts both domestic and foreign venture capital firms. This paper investigates the impact of venture capital investment on the impact of portfolio companies. The innovation and significance of this article lies in: 1) widened the dimension of the VC research: study the multi-factor effect on portfolio companies; 2)expanded the sample size: covering all the manufacturing companies in China that received venture investment between 1999 and 2014. We focus on the impact of foreign VC firms and domestic VC firms on the ROA performance of Chinese portfolio companies by conducting a Least Square Regression. The model shows that portfolio company industry, investment stage as well as capital managed by VC firms are factors significantly affect portfolio company performance. Specifically, we find that after controlling for eight factors, namely, China region, industry, syndicate size, stage indicator, company CEO experience, total venture capital investment, VC firm capital under management, and VC firm age, whether VC firm is domestic or foreign doesn't play an important role.
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Proceedings
2016 International Conference on Engineering and Technology Innovations
Part of series
Advances in Engineering Research
Publication Date
March 2016
ISBN
978-94-6252-170-4
DOI
https://doi.org/10.2991/iceti-16.2016.30How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Yan Jiang
AU  - Ye Xu
PY  - 2016/03
DA  - 2016/03
TI  - Venture capital investment performance: Based on innovation perspective of multi-factor effect
BT  - 2016 International Conference on Engineering and Technology Innovations
PB  - Atlantis Press
UR  - https://doi.org/10.2991/iceti-16.2016.30
DO  - https://doi.org/10.2991/iceti-16.2016.30
ID  - Jiang2016/03
ER  -