HOME JOURNALS CONTACT

Journal of Applied Sciences

Year: 2013 | Volume: 13 | Issue: 9 | Page No.: 1612-1620
DOI: 10.3923/jas.2013.1612.1620
Investment Performance and Venture Capital Networks in Transitional Economics
Zhou Yuhong

Abstract: Transitional economics are in the process of institutional change and improvement. So, uncertainties in the system environment bring greater risk and instability to venture investment. However, superior network cooperation relations can achieve complementariness to resources of institutions in venture capital. Thus it is favorable for transmission of internal information. Moreover, it helps to overcome the adverse effect caused by the instability of system environment. 1593 Chinese start-ups invested by venture capital firms in 1989~2012 were adopted as the study sample. And 7151 venture capital events were used to construct a panel data model, proving the important role in the Transitional economics of venture capital firms network position on investment performance.

Fulltext PDF

How to cite this article
Zhou Yuhong , 2013. Investment Performance and Venture Capital Networks in Transitional Economics. Journal of Applied Sciences, 13: 1612-1620.

Keywords: performance, social network, Venture capital and Transitional economics

REFERENCES
  • Yao, Z., X.Y. Wang and Y.K. Chen, 2011. Venture capital covenants set and its action mechanism of motivation. Manage. World, 2: 127-141.

  • Large, D. and S. Muegge, 2008. Venture capitalists' non-financial value-added: An evaluation of the evidence and implications for research. Vent. Capital, 10: 20-53.
    CrossRef    

  • Fitza, M., S.F. Matusik and E. Mosakowski, 2009. Do VCs matter? The importance of owners on performance variance in start-up firms. Strat. Manage. J., 30: 387-404.
    Direct Link    

  • Hochberg, Y.V., A. Ljungqvist and Y. Lu, 2010. Networking as a barrier to entry and the competitive supply of venture capital. J. Finance, 65: 829-859.
    CrossRef    

  • Hochberg, Y.V., A. Ljungqvist and Y. Lu, 2007. Whom you know matters: Venture capital networks and investment performance. J. Finance, 62: 251-301.
    Direct Link    

  • North, D.C., 2012. Institutions, Institutional Change and Economic Performance. 2nd Edn., Cambridge University Press, Cambridge, ISBN-13: 9780521397346, Pages: 152

  • Granovetter, M.S., 1973. The strength of weak ties. Am. J. Sociol., 78: 1360-1380.
    Direct Link    

  • Abell, P. and T. Nisar, 2007. Performance effects of venture capital firm networks. Manage. Dicision, 45: 923-936.
    CrossRef    

  • Ewens, M., 2010. Venture Capital Returns, New Firms and Social Networks. University of California, San Diego

  • Zhou, Y.H. and G.H. Song, 2012. Review of venture capital network research and future prospects. For. Econo. Manage., 6: 17-24.

  • Ljungqvist, A., F. Marston and W.J. Wilhelm Jr., 2005. Scaling the hierarchy: How and why investment banks compete for syndicate co-management appointments. Rev. Financ. Stud., 22: 3977-4007.
    CrossRef    

  • Lerner, J., 1994. Venture capitalists and the decision to go public. J. Financial Econo., 35: 293-316.
    CrossRef    

  • Bygrave, W.D., 1987. Syndicated investments by venture capital firms: A networking perspective. J. Bus. Vent., 2: 139-154.
    Direct Link    

  • Ahlstrom, D. and G.D. Bruton, 2006. Venture capital in emerging economies: Networks and institutional change. Entrepreneurship Theo. Pract., 30: 299-320.
    CrossRef    

  • Ritter, T. and H.G. Gemunden, 2003. Network competence: Its impact on innovation success and its antecedents. J. Bus. Res., 56: 745-755.
    CrossRef    

  • Hagedoorn, J., N. Roijakkers and K.H. Van, 2006. Inter-firm R&D networks: The importance of strategic network capabilities for high-tech partnership formation. Br. J. Manage., 17: 39-53.
    CrossRef    

  • De Carvalho, A.G., C.W. Calomiris and J.A. de Matos, 2008. Venture capital as human resource management. J. Econo. Bus., 60: 223-255.
    CrossRef    

  • Meuleman, M., M. Wright, S. Manigart and A. Lockett, 2009. Private equity syndication: Agency costs, reputation and collaboration. J. Bus. Finance Acco., 36: 616-644.
    Direct Link    

  • Nahata, R., 2008. Venture capital reputation and investment performance. J. Financial Econo., 90: 127-151.
    Direct Link    

  • Zarutskie, R., 2008. The role of top management team human capital in venture capital markets: Evidence from first-time funds. J. Bus. Vent.,.

  • Freeman, L.C., 1979. Centrality in social networks conceptual clarification. Social Networks, 1: 215-239.
    CrossRef    Direct Link    

  • Nieminen, V., 1974. On centrality in a graph. Scandinavian J. Psychol., 15: 332-336.

  • Marsden, P.V., 1982. Brokerage Behaviour in Restricted Exchange Networks. In: Social Structure and Network Analysis, Marsden, P.V. and N. Lin (Eds.). Sage Publications, Beverly Hills, CA

  • Burt, R.S., 1992. Structural Holes: The Social Structure of Competition. 1st Edn., Harvard University Press, Cambridge, MA., USA., pp: 323

  • Hausman, J.A., 1978. Specification tests in econometrics. Econometrica, 46: 1251-1271.
    Direct Link    

  • Baltagi, B.H., 2011. Econometric Analysis of Panel Data. 4th Edn., Sage Publications, Thousand Oaks, CA

    • © Science Alert. All Rights Reserved