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

Zhang, Yuejia

doi:10.1007/s11187-018-9989-4

Cited by 36 publications

(34 citation statements)

References 62 publications

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“…The GVC industry provides an attractive entrepreneurial finance scenario to study institutional mechanisms and organizational behavior. First, government financiers fill a critical gap in the financial market for new and innovative ventures and act as catalysts of regional economic development (Bertoni and Tykvová 2015;Zhang 2018). Second, the investment decision making is embedded in a highly regulated context where the use of taxpayers' money means that the distribution of resources is expected to be efficient.…”

Section: Sample Approachmentioning

confidence: 99%

“…GVC has had debatable results in many countries (Lerner 2012;Lerner and Watson 2008;Bertoni and Tykvová 2015). GVCs are nevertheless considered catalysts of regional economic development (Zhang 2018), aiming to support regional ventures in markets where traditional venture capital is thin. They thus complement traditional venture capital by bridging the financial gap (Bertoni and Tykvová 2015) and providing a certification effect in front of private venture capital, this by decreasing information asymmetry (Martí and Quas 2018).…”

Section: Introductionmentioning

confidence: 99%

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How individual cognitions overshadow regulations and group norms: a study of government venture capital decisions

et al. 2019

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This paper explores how government venture capitalists approve or reject financing applications. Based on longitudinal observations, complemented by interviews, documentation, and secondary data, the findings show the limited influence of the regulative and normative logics (e.g., formal guidelines and accepted behavior) on government venture capitalists' decisions. Instead, individual decisions are observed to be largely overshadowed by cognitions and heuristics, which dominate formal regulations and socially constructed group-level norms. Although official decision communications state that regulations have been followed, the evidence suggests that the cognitive logic dominates the funding decision-making process through a set of overshadowing forces that restrict the influence of the normative and regulative logics on funding decisions. This research has implications for venture financing and highlights the importance of cognitions in shaping venture capital decisions.

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Section: Sample Approachmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

How individual cognitions overshadow regulations and group norms: a study of government venture capital decisions

et al. 2019

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“…Third, our study extends the role of the government in the development of clean energy industries in emerging economies. The government can operate indirectly through renewable energy and climate policies to make clean energy startups attractive [17] and by directly setting up GVC firms [18] or using the status of GVC to attract more private VC (PVC) firms into the clean energy industry by forming network relationships [19].…”

Section: Of 25mentioning

confidence: 99%

“…The research of the firm level mainly focuses on the VC firms' reputation and government background. VC firms choose syndication partners and management relationships according to the resources needed, reputation, and government background, which are important characteristics of VC firms that symbolize the investment ability and government resources of the VC firms [11,19]. The studies of the dyad level mainly focus on the geographic proximity and cognitive proximity between VC firms.…”

Section: Vc Network Evolutionmentioning

confidence: 99%

“…Therefore, GVC firms will continuously adjust their syndication partners. Second, due to the strong heterogeneity between GVC firms and PVC firms, there are high agency costs and transaction costs between them, which often cause cooperation friction [19]. Therefore, the network relationship formed by the GVC tends to be disbanded.…”

Section: Firm-level Factors and Network Evolutionmentioning

confidence: 99%

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Dynamic Evolution of Venture Capital Network in Clean Energy Industries Based on STERGM

et al. 2019

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This paper provides a detailed description of venture capital (VC) investments in clean energy industries in China over the period 2006–2017 and explores the evolution of clean energy industry VC networks through network formation and network dissolution. Results from the separable temporal exponential-family random graph model (STERGM) show that the factors vary in their relative importance for clean energy industry VC network formation and dissolution. Specifically, governmental venture capital (GVC) and geographic proximity have strong impacts on the formation of networks but not on their dissolution. Reputation and structural embeddedness promote the formation of networks and inhibit their dissolution, and cognitive proximity is found to cause network formation while facilitating network dissolution. The results provide practical and theoretical guidance for the network development of VC firms investing in clean energy industries.

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Evaluation and selection of Chinese government venture capital investment projects: A research based on analytic hierarchy process and intuitionistic fuzzy set–technique for order of preference by similarity to ideal solution method

Tian

Buitrago

2021

Manage Decis Econ

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This study, based on the characteristics of the Chinese government venture capital (GVC), developed an index system that basically allows to identify potential on key aspects on a given start‐up, proposing a decision‐making method based on analytic hierarchy process (AHP) and intuitionistic fuzzy set–technique for order of preference by similarity to ideal solution (IFS‐TOPSIS) to evaluate and select Chinese GVC investment projects. A numerical example of how the proposed model was applied to a GVC investment project selection in China is provided. Our results showed that the adoption of this methodology can contribute to increase fairness and transparency in the evaluation process on GVCs, and the proposed index set is ideal for GVCs for start‐up selection.

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

Cited by 36 publications

References 62 publications

How individual cognitions overshadow regulations and group norms: a study of government venture capital decisions

How individual cognitions overshadow regulations and group norms: a study of government venture capital decisions

Dynamic Evolution of Venture Capital Network in Clean Energy Industries Based on STERGM

Evaluation and selection of Chinese government venture capital investment projects: A research based on analytic hierarchy process and intuitionistic fuzzy set–technique for order of preference by similarity to ideal solution method

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