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CVC Involvement, Digital Transformation, and Risk-Taking of Investee Companies: Evidence from China

Author

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  • Lei Wang
  • Wenjing Chen
  • Yunbi An

Abstract

This paper investigates the impact of corporate venture capital (CVC) involvement on digital transformation and the risk-taking behavior of investee companies. Based on data on manufacturing companies listed on the Small and Medium-sized Enterprise (SME) board and the Growth Enterprise Market (GEM) of the Shenzhen Stock Exchange from 2015 to 2022, we find that CVC involvement helps boost the risk-taking level of investee companies. This is because CVC promotes corporate digital transformation, which in turn enhances corporate risk-taking. Finally, we show that the promoting effect of CVC on corporate risk-taking is more pronounced for investee companies with a small size and investee companies with a high degree of operating leverage. Our findings provide novel evidence for the effect of CVC on corporate risk-taking in the digital age.

Suggested Citation

  • Lei Wang & Wenjing Chen & Yunbi An, 2025. "CVC Involvement, Digital Transformation, and Risk-Taking of Investee Companies: Evidence from China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 61(6), pages 1630-1643, May.
    • Handle: RePEc:mes:emfitr:v:61:y:2025:i:6:p:1630-1643
    DOI: 10.1080/1540496X.2024.2422977
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