IDEAS home Printed from https://ideas.repec.org/a/eee/pacfin/v91y2025ics0927538x25000939.html
   My bibliography  Save this article

Impact of venture capital on innovation in key & core technology firms

Author

Listed:
  • Wang, Song
  • Ma, Chuang
  • Yu, Mei
  • Guo, Xin

Abstract

Innovation holds a core position in development and serves as a pivotal force for driving China's economic transformation towards high-quality development. We select firms listed on the Shanghai Stock Exchange Science and Technology Innovation Board (SSE STAR Market) from 2019 to 2024 to investigate the impact of venture capital (VC) involvement on corporate innovation and analyze its mechanisms. The results indicate that earlier investment and higher shareholding by venture capital in STAR Market firms have significant effects on their innovation. Meanwhile, early-stage VC investment and shareholding have different effects on the innovation capabilities of STAR Market firms. Mechanism analysis reveals that venture capital promotes corporate innovation more significantly in firms facing higher industry competition and stronger financing constraints. Further heterogeneity analysis of STAR Market firms adhering to different listing standards shows that earlier investment and shareholding have a more pronounced promoting effect on firms listed under the second set of standards.

Suggested Citation

  • Wang, Song & Ma, Chuang & Yu, Mei & Guo, Xin, 2025. "Impact of venture capital on innovation in key & core technology firms," Pacific-Basin Finance Journal, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:pacfin:v:91:y:2025:i:c:s0927538x25000939
    DOI: 10.1016/j.pacfin.2025.102756
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0927538X25000939
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.pacfin.2025.102756?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:pacfin:v:91:y:2025:i:c:s0927538x25000939. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/pacfin .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.