TY - GEN
T1 - The impact of venture capital on corporate performance
AU - Liu, Ningyue
AU - Huang, Zitong
N1 - Publisher Copyright:
© 2017 IEEE.
PY - 2017/7/28
Y1 - 2017/7/28
N2 - Using the data of firms listed on the Growth Enterprises Market Board (GEM) in China from 2009 to 2014, this paper investigates the influence of venture capital (VC) on corporate performance from three time dimensions - pre-IPO, post-IPO, and from pre-IPO to post-IPO. First, our findings indicate that China's GEM market also has 'IPO Effect', which is consistent with foreign capital markets that there is a general decline trend of corporate performance after IPO. Furthermore, before IPO, VC-backed enterprises have better corporate performance than those Non-VC-backed enterprises, but this is mainly due to the high earnings management level manipulated by VC. Finally, after IPO, corporate performance of VC backed enterprises is lower than that of Non-VC-backed enterprises. The results show that VC's participation will increase the decline level of performance from pre-IPO to post-IPO. These research results are of great importance to the guidance of Chinese venture capital towards a healthy direction.
AB - Using the data of firms listed on the Growth Enterprises Market Board (GEM) in China from 2009 to 2014, this paper investigates the influence of venture capital (VC) on corporate performance from three time dimensions - pre-IPO, post-IPO, and from pre-IPO to post-IPO. First, our findings indicate that China's GEM market also has 'IPO Effect', which is consistent with foreign capital markets that there is a general decline trend of corporate performance after IPO. Furthermore, before IPO, VC-backed enterprises have better corporate performance than those Non-VC-backed enterprises, but this is mainly due to the high earnings management level manipulated by VC. Finally, after IPO, corporate performance of VC backed enterprises is lower than that of Non-VC-backed enterprises. The results show that VC's participation will increase the decline level of performance from pre-IPO to post-IPO. These research results are of great importance to the guidance of Chinese venture capital towards a healthy direction.
KW - Corporate performance
KW - Earnings management
KW - IPO effect
KW - Venture capital
UR - http://www.scopus.com/inward/record.url?scp=85028599099&partnerID=8YFLogxK
U2 - 10.1109/ICSSSM.2017.7996252
DO - 10.1109/ICSSSM.2017.7996252
M3 - Conference contribution
AN - SCOPUS:85028599099
T3 - 14th International Conference on Services Systems and Services Management, ICSSSM 2017 - Proceedings
BT - 14th International Conference on Services Systems and Services Management, ICSSSM 2017 - Proceedings
A2 - Cai, Xiaoqiang
A2 - Tang, Jiafu
A2 - Chen, Jian
PB - Institute of Electrical and Electronics Engineers Inc.
T2 - 14th International Conference on Services Systems and Services Management, ICSSSM 2017
Y2 - 16 June 2017 through 18 June 2017
ER -