VENTURE CAPITAL AND CORPORATE INNOVATION INPUT FROM THE PERSPECTIVE OF SYNDICATED INVESTMENT

  • Ning Jiang Zhejiang University
  • Yuan Yang Zhejiang University
  • Bingkun Yang Zhejiang University
  • Wenli Huang China Academy of Financial Research, Zhejiang University of Finance & Economics
Keywords: Venture capital, Syndicated investment, Innovation input

Abstract

Using data for 341 enterprises listed on the Growth Enterprise Market (GEM) of the Shenzhen Stock Exchange and taking R&D expenditure as an indicator of innovation investment, this paper implements multiple linear regression to test whether venture capital promotes corporate innovation input. It also considers the relationship between the syndicated investment of venture capital and innovation input. The results show
that venture capital indeed promotes R&D in the invested enterprises. The innovation input of syndicated investment enterprises is significantly higher than that of sole investment enterprises. Under syndicated investment, the higher the number of syndicated investment members and the greater the heterogeneity of the shareholding ratio among the members, the higher is the innovation input. The reputation of the syndicated investment team, however, has no significant impact on innovation input.

Downloads

Download data is not yet available.

References

Beckman, C. M., and Haunschild, P. R. (2002). Network Learning: The Effects of Heterogeneity of Partners’ Experience on Corporate Acquisitions. Administrative Science Quarterly, 47, 92-124.
Holmstrom, B. (1989). Agency Cost and Innovation. Journal of Economic Behavior and Organization, 12, 305-327.
Chemmanur, T. J., and Loutskina, E. (2004). The Role of Venture Capital Backing in Initial Public Offerings: Certification, Screening, or Market Power?. Ssrn Electronic Journal.
Si, C., Wenlong, H., and Ran, Z. (2017). Venture Capital and Enterprise Innovation: Impact and Potential Mechanism . Management World, 2017, 158-169.
Keuschnigg, C. (2004). Venture Capital Backed Growth. Journal of Economic Growth,
9, 239-261.
Hongdong, F. (2010). Analysis and Solution of Financing Difficulties in Start-up Enterprises [D]. Beijing Jiaotong University.
Leiming, L., Dizhen, W., and Yahui, Z. (2012). Is VC a More Active Investor?——Evidence from Innovation Investment of Listed Companies on GEM. Financial Research, 10, 125-138.
Gompers, P. A. (1996). Grandstanding in the Venture Capital industry. Journal of
Financial Economics, 42, 133-156.
Yannan, G., and Jing, D. (2014). Research on the Impact of Venture Capital on Enterprise Technology Innovation. Scientific Research Management, 2014, 35, 35-42.
Hellmann, T., and Puri, M. (2002). Venture Capital and the Professionalization of Start‐Up Firms: Empirical Evidence. Journal of Finance, 57, 169-197.
Hsu, D. H. (2004). What Do Entrepreneurs Pay for Venture Capital Affiliation?. Journal of Finance, 59, 1805-1844.
Kaplan, S. N., Strömberg, P. (2004). Characteristics, Contracts, and Actions: Evidence from Venture Capitalist Analyses. Journal of Finance, 59, 2177–2210.
Kortum, S., and Lerner, J. (2000). Assessing the Contribution of Venture Capital to Innovation. Rand Journal of Economics, 31, 674-692.
Leland, H. E., and Pyle, D. H. (1977). Informational Asymmetries, Financial Structure, and Financial Intermediation. Journal of Finance, 32, 371-387.
Fan, L. (2015). Financing Constraints, Venture Capital and SME Growth——Based on the Empirical Study of Chinese A-share Listed Companies. Journal of Hebei University of Economics and Business, 36, 72-79.
Yao, L., Yeqing, Z., Rui, J., et al. (2017). “Syndicate” Venture Capital and Enterprise Innovation. Financial Research, 159-175.
Popov, A., and Roosenboom, P. (2012). Venture capital and patented innovation: evidence from Europe. Economic Policy, 27, 447-482.
Weitao, S., and Liufen, H. (2014). Research on the Impact of Venture Capital Syndicated Investment on Corporate Governance of the Invested Companies——Based on the Perspective of Board Structure and Executive
Compensation Contract. Review of Finance and Economics, 64-71.
Tian, X. (2011). The Role of Venture Capital Syndication in Value Creation for Entrepreneurial Firms. Review of Finance, 2012, 16, 245-283.
Tian, X., and Wang, T. Y. (2011). Tolerance for failure and corporate innovation. The Review of Financial Studies, 27, 211-255.
Lanfang, W., and Yue, H. (2017). Does Venture Capital Promote Innovation Performance? An Empirical Test Based on Panel Data of Chinese Enterprises. Financial Research, 01, 177-190.
Chaopeng, W., Shinong, W., Jingya, C and Lu, W. (2012). Empirical Study on the Impact of Venture Capital on Investing and Financing Behavior of Listed Companies. Economic Research, 105-119.
Qiaozhen, W. (2009). Path Analysis of Independent Innovation in Venture Capital Supporting High-tech Industry . Management World, 07, 174-175.
Hao, X., Dizhen, W., and Jin, X. (2015). Venture Capital Background, Shareholding Ratio and R&D Investment of Start-up Enterprises. Science Research, 33,1547- 1554.
Zhenghua, Z., Yangyang, T., and Lei, W. (2015). The Impact of Joint Venture Capital on the Technological Innovation Capability of Target Enterprises——Based on the Empirical Analysis of Listed Companies in Shenzhen GEM. Technological Economy, 34,24-30.
Zhijie, Z., and Tie, L. (2001). Venture Capital and Financial Innovation in the New Economy. Financial Research, 03,130-134.

PlumX Metrics

Published
2019-04-30
How to Cite
Jiang, N., Yang, Y., Yang, B., & Huang, W. (2019). VENTURE CAPITAL AND CORPORATE INNOVATION INPUT FROM THE PERSPECTIVE OF SYNDICATED INVESTMENT. Buletin Ekonomi Moneter Dan Perbankan, 22(1), 29 - 46. https://doi.org/10.21098/bemp.v22i1.1036
Section
Articles