Venture Capital and the TFP growth of Chinese Manufacturing Firms

DOI

10.2991/icmia-16.2016.7How to use a DOI?

Keywords

Venture Capital; TPF; productivity efficiency, technological performance

Abstract

Based on the panel data of SME firms in the manufacturing industry, this paper explores whether the involvement of venture capital can have significant impact on the manufacturing firms' performance in the productivity efficiency. The lagged value of the shareholding of VC firms is proven to be negatively correlated with the TFP growth of manufacturing firms. The DID models regression results also imply that Venture backing is negatively correlated with the TFP growth of manufacturing firms. As is concluded that, in the manufacturing sector, the Venture Capital firms in China act more like speculative investors who just care more about how to exit the investments in a short time by rushing the IPO process of the investees, which consequently leads to the inhibitory impact on the technological performance and productivity efficiency of the manufacturing firms.

Copyright

© 2016, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Xi Yang
AU  - Susheng Wang
PY  - 2016/11
DA  - 2016/11
TI  - Venture Capital and the TFP growth of Chinese Manufacturing Firms
BT  - Proceedings of the 2016 5th International Conference on Measurement, Instrumentation and Automation (ICMIA 2016)
PB  - Atlantis Press
SP  - 34
EP  - 37
SN  - 1951-6851
UR  - https://doi.org/10.2991/icmia-16.2016.7
DO  - 10.2991/icmia-16.2016.7
ID  - Yang2016/11
ER  -