Government venture capital

  • 详情 Chinese government venture capital and firms’ financing:does certification help
    This paper examines the ‘certification’ of government venture capital (GVC) programs, disputes whether the Chinese government venture capital (CGVC) can promote target firms’financing through the ‘certification’ on target firms, and how the ‘certification’ work. Using a dataset of 87865 Chinese listed firms over 2008–2018, we confirmed that CGVC’s investment promotes target firms’ equity financing but inhibits corporate debt financing through the certification effect and CGVC’s reputation. Moreover, the high reputation of GVC and high market awareness could strength the ‘certification effect.’Simultaneously, the ‘certification effect’is only effective for early and late-stage firms and private-owned firms, and invalid for mature stage and state-owned firms.
  • 详情 Can Governments Foster the Development of Venture Capital?
    Exploring a novel dataset and a unique policy experiment, this paper examines the role of government intervention in the emergence of venture capital (VC) in China during 1999-2013. Using difference-in-difference methodology, I find that the central government program leads to an increase in local investment from both government and private VCs, which doubles the number of successful companies. The positive impact is most pronounced in relatively less developed regions and during the early development of the VC sector. I present two micro-level transmission channels of the crowding-in effects, through networks formed by previous investments and through co-ownership in VC affiliates.