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The dynamics of network communities and venture capital performance: Evidence from China

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  • Xue, Chaokai
  • Jiang, Ping
  • Dang, Xinghua

Abstract

This paper examines the impact of the dynamics of network communities on venture capital (VC) investment performance in China. We use Chinese VC market data for the period 2000 to 2015 and find that VCs’ cross-community movements have significant positive impacts on their subsequent performances, such as exit probability via initial public offerings (IPOs) and internal rate of return (IRR).

Suggested Citation

  • Xue, Chaokai & Jiang, Ping & Dang, Xinghua, 2019. "The dynamics of network communities and venture capital performance: Evidence from China," Finance Research Letters, Elsevier, vol. 28(C), pages 6-10.
    • Handle: RePEc:eee:finlet:v:28:y:2019:i:c:p:6-10
    DOI: 10.1016/j.frl.2018.03.009
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    Cited by:

    1. Ameeta Jaiswal-Dale & Fanny Simon-Lee & Giovanna Zanotti & Peter Cincinelli, 2022. "The Role of Social Networking in Capital Sourcing," Global Business Review, International Management Institute, vol. 23(2), pages 247-258, April.
    2. Wang, Rouzhi & Wu, Chaopeng, 2020. "Politician as venture capitalist: Politically-connected VCs and IPO activity in China," Journal of Corporate Finance, Elsevier, vol. 64(C).
    3. TIAN, Xiaoli & KOU, Gang & ZHANG, Weike, 2020. "Geographic distance, venture capital and technological performance: Evidence from Chinese enterprises," Technological Forecasting and Social Change, Elsevier, vol. 158(C).
    4. Gu, Jing & Zhang, Fujuan & Xu, Xun & Xue, Chaokai, 2023. "Stay or switch? The impact of venture capitalists' movement across network communities on enterprises’ innovation performance," Technovation, Elsevier, vol. 125(C).
    5. Chen Zhang & Xinghua Dang & Tao Peng & Chaokai Xue, 2019. "Dynamic Evolution of Venture Capital Network in Clean Energy Industries Based on STERGM," Sustainability, MDPI, vol. 11(22), pages 1-25, November.

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    More about this item

    Keywords

    Dynamics of network communities; Cross-community movements; Venture capital;
    All these keywords.

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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