Venture Capital in China: Development, Confidence, and Lessons
AbstractThe venture capital industry in China is in a formative stage with an evolving set of government regulations to respond to and new metrics to adopt. Through this development process, the confidence that venture capitalists possess in the high-growth entrepreneurial environment in China is critical as it provides a platform from which future fund-raising and investment decisions are made. While China’s rapid economic growth is driven, in part, by its entrepreneurial expansion and the development of its venture capital industry, there has not before been a systematic study of venture capitalist (VC) confidence in China. We began tracking the confidence of venture capitalists in China each quarter in Q2 2005. In this report we explore the practical and theoretical relation that Chinese VC confidence has to other aspects of the Chinese entrepreneurial environment. We found that changes in China VC confidence tend to precede changes in the Shanghai Index in the same direction; they also tend to precede changes in the NASDAQ Index in a similar manner. Based on these discovered relationships we offer theoretical and managerial contributions to the stream of venture capital research in China and a discussion of potential lessons for the development of venture capital in other regions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by UNIVERSIDAD JAVERIANA - CALI in its journal ECONOMÍA, GESTIÓN Y DESARROLLO.
Volume (Year): (2012)
Issue (Month): ()
Contact details of provider:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Black, Bernard S. & Gilson, Ronald J., 1998. "Venture capital and the structure of capital markets: banks versus stock markets," Journal of Financial Economics, Elsevier, vol. 47(3), pages 243-277, March.
- Akerlof, George A, 1970. "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, MIT Press, vol. 84(3), pages 488-500, August.
- Bruton, Garry D. & Ahlstrom, David, 2003. "An institutional view of China's venture capital industry: Explaining the differences between China and the West," Journal of Business Venturing, Elsevier, vol. 18(2), pages 233-259, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rafael Posada).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.