{"title":"Leading or facilitating? —— The appropriate role of governmental venture capital in China","authors":"Zhoubo Xia , Xiuping Hua , Yong Wang , Jiadong Peng","doi":"10.1016/j.ribaf.2025.102807","DOIUrl":null,"url":null,"abstract":"<div><div>This paper examines the influence of syndicated investments involving governmental venture capital (GVC) and private venture capital firms (PVC) on the success of innovative companies in China. By analysing a comprehensive dataset of small and medium-sized firms in China’s third-tier equity market, the National Equities Exchange and Quotations (NEEQ), we demonstrate that compared to the syndicated investment led by GVC, those GVCs playing a facilitating role have a more significant effect on boosting innovation firms' success in NEEQ. We identify three ways syndications help firms graduate to main stock markets: improving resource allocation, enhancing innovation quality, and lowering agency risk. Further investigation based on a quasi-natural experiment indicates that GVC-facilitating syndication impacts are more pronounced after adopting the Government Investment Regulation in 2018.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"76 ","pages":"Article 102807"},"PeriodicalIF":6.3000,"publicationDate":"2025-02-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Research in International Business and Finance","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0275531925000637","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
This paper examines the influence of syndicated investments involving governmental venture capital (GVC) and private venture capital firms (PVC) on the success of innovative companies in China. By analysing a comprehensive dataset of small and medium-sized firms in China’s third-tier equity market, the National Equities Exchange and Quotations (NEEQ), we demonstrate that compared to the syndicated investment led by GVC, those GVCs playing a facilitating role have a more significant effect on boosting innovation firms' success in NEEQ. We identify three ways syndications help firms graduate to main stock markets: improving resource allocation, enhancing innovation quality, and lowering agency risk. Further investigation based on a quasi-natural experiment indicates that GVC-facilitating syndication impacts are more pronounced after adopting the Government Investment Regulation in 2018.
期刊介绍：
Research in International Business and Finance (RIBAF) seeks to consolidate its position as a premier scholarly vehicle of academic finance. The Journal publishes high quality, insightful, well-written papers that explore current and new issues in international finance. Papers that foster dialogue, innovation, and intellectual risk-taking in financial studies; as well as shed light on the interaction between finance and broader societal concerns are particularly appreciated. The Journal welcomes submissions that seek to expand the boundaries of academic finance and otherwise challenge the discipline. Papers studying finance using a variety of methodologies; as well as interdisciplinary studies will be considered for publication. Papers that examine topical issues using extensive international data sets are welcome. Single-country studies can also be considered for publication provided that they develop novel methodological and theoretical approaches or fall within the Journal''s priority themes. It is especially important that single-country studies communicate to the reader why the particular chosen country is especially relevant to the issue being investigated. [...] The scope of topics that are most interesting to RIBAF readers include the following: -Financial markets and institutions -Financial practices and sustainability -The impact of national culture on finance -The impact of formal and informal institutions on finance -Privatizations, public financing, and nonprofit issues in finance -Interdisciplinary financial studies -Finance and international development -International financial crises and regulation -Financialization studies -International financial integration and architecture -Behavioral aspects in finance -Consumer finance -Methodologies and conceptualization issues related to finance
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