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The impact of early-stage venture capital on innovation and entrepreneurship

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  • Jin, Xianglu
  • Guan, Shuyuan

Abstract

This study explores the impact of early-stage venture capital on enterprise innovation and entrepreneurship, particularly focusing on heterogeneous performances under different regional contexts and levels of equity balance. Through empirical analysis of data from Chinese listed companies between 2010 and 2023, the research finds that early-stage venture capital has a significant positive effect on enterprise innovation and entrepreneurship. Regional heterogeneity analysis indicates that the influence of early-stage venture capital on enterprise innovation and entrepreneurship is more pronounced in the eastern and western regions, while its effect is relatively weaker in the central region. Additionally, the analysis of equity balance heterogeneity reveals that early-stage venture capital has a more significant impact on enterprise innovation and entrepreneurship in companies with a higher degree of equity balance.

Suggested Citation

  • Jin, Xianglu & Guan, Shuyuan, 2025. "The impact of early-stage venture capital on innovation and entrepreneurship," Finance Research Letters, Elsevier, vol. 85(PE).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pe:s1544612325014734
    DOI: 10.1016/j.frl.2025.108218
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    References listed on IDEAS

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