This paper uses all 1404 initial public offerings （1PO） undertaken between 2002 and 2012 in China to analyze whether venture capital （VC） investment, especially foreign VC investment, brings more or less value-add...This paper uses all 1404 initial public offerings （1PO） undertaken between 2002 and 2012 in China to analyze whether venture capital （VC） investment, especially foreign VC investment, brings more or less value-added services to the invested companies during the 3 years following the IPO. The results show that venture capitalists choose to invest in companies with higher value potential, and, in turn, the value of the companies increases after the 1PO is undertaken;foreign VC adds more value to companies than domestic venture capital. However, the profitability of VC-backed and non VC-backed companies after IPO does not differ significantly. Nevertheless, it is shown that VC plays an active role in China.展开更多
基金The authors are grateful for support provided through Beijing Natural Science Foundation （Grant No. 9122005） and the project of Collaborative Innovation Center for State- owned Assets Administration of Beijing Technology and Business University （Grant No. GZ20131101 ）.
文摘This paper uses all 1404 initial public offerings （1PO） undertaken between 2002 and 2012 in China to analyze whether venture capital （VC） investment, especially foreign VC investment, brings more or less value-added services to the invested companies during the 3 years following the IPO. The results show that venture capitalists choose to invest in companies with higher value potential, and, in turn, the value of the companies increases after the 1PO is undertaken;foreign VC adds more value to companies than domestic venture capital. However, the profitability of VC-backed and non VC-backed companies after IPO does not differ significantly. Nevertheless, it is shown that VC plays an active role in China.
