{"title":"Who are responsible venture capitalists? The effect of business experience","authors":"","doi":"10.1016/j.iref.2024.103593","DOIUrl":null,"url":null,"abstract":"<div><p>Using 891 venture capitalist- and 1777 deal-level samples of China, we find that venture capitalists with business experience significantly promote their portfolio-firm's corporate social responsibility (CSR) performance better than those without business experience. To explore the mechanisms, we perform DID test and heterogeneity analysis. First, we find venture capitalists with business experience increase the CSR performance of firms in hazardous industries following a shock that raised awareness of CSR, which indicates that the venture capitalists have more social consciousness. Second, the effects of business experience on CSR are stronger if venture capitalists invest in earlier stages of firms or have greater equity ownerships, in which cases the venture capitalists have more and better opportunities to display their abilities in CSR activities. Overall, our findings highlight the effects of venture capitalists' human capital on sustainable investments.</p></div>","PeriodicalId":14444,"journal":{"name":"International Review of Economics & Finance","volume":null,"pages":null},"PeriodicalIF":4.8000,"publicationDate":"2024-09-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Review of Economics & Finance","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1059056024005859","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
Using 891 venture capitalist- and 1777 deal-level samples of China, we find that venture capitalists with business experience significantly promote their portfolio-firm's corporate social responsibility (CSR) performance better than those without business experience. To explore the mechanisms, we perform DID test and heterogeneity analysis. First, we find venture capitalists with business experience increase the CSR performance of firms in hazardous industries following a shock that raised awareness of CSR, which indicates that the venture capitalists have more social consciousness. Second, the effects of business experience on CSR are stronger if venture capitalists invest in earlier stages of firms or have greater equity ownerships, in which cases the venture capitalists have more and better opportunities to display their abilities in CSR activities. Overall, our findings highlight the effects of venture capitalists' human capital on sustainable investments.
期刊介绍:
The International Review of Economics & Finance (IREF) is a scholarly journal devoted to the publication of high quality theoretical and empirical articles in all areas of international economics, macroeconomics and financial economics. Contributions that facilitate the communications between the real and the financial sectors of the economy are of particular interest.