Gain or pain? New evidence on mixed syndication between governmental and private venture capital firms in China

Autor:	Yuejia Zhang
Rok vydání:	2018
Předmět:	Selection bias Economics and Econometrics Entrepreneurship Web syndication 050208 finance Actuarial science media_common.quotation_subject 05 social sciences Instrumental variable Context (language use) Venture capital General Business Management and Accounting 0502 economics and business Portfolio Endogeneity Business 050203 business & management Industrial organization media_common
Zdroj:	Small Business Economics. 51:995-1031
ISSN:	1573-0913 0921-898X
DOI:	10.1007/s11187-018-9989-4
Popis:	I investigate the performance of mixed syndication involving both governmental and private venture capital firms (GVCs and PVCs) in the context of China. Using the data on the investments in start-ups between 1995 and 2011, I find that start-ups backed by mixed syndication in their initial financing round are less likely to survive to the next round to obtain refinancing, compared to those backed by syndication solely among PVCs. I present evidence consistent with two possible explanations of the underperformance of firms backed by mixed syndication: a potentially lower criterion of selecting portfolio companies when led by PVCs and less complementary resources but higher coordination cost in mixed syndication. The empirical results continue to hold when using instrumental variables, propensity score matching analysis and the quasi-maximum likelihood estimation method for mitigating the potential selection bias and endogeneity problems.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::0ab6302aadba5e954430b1b7676d1251 https://doi.org/10.1007/s11187-018-9989-4 Zobrazit plný text záznamu Plný text ve formátu PDF Plný text ve formátu HTML
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