Xiutian Zheng
Business Administration School, Zhejiang Gongshang University, Hangzhou, 310018, China
Yongbin Xu
Qianjiang College, Hangzhou Normal University, Hangzhou, 310016, China
Lingyan Gu
Qianjiang College, Hangzhou Normal University, Hangzhou, 310016, China
ABSTRACT
As one of the most important intangible assets, reputation should be taken into account when VC firms make investment decisions, while the impact of VC firms reputation on their investment decisions has received little attention. The paper studies how a VC firms reputation affects its investment decisions by building mathematical models. Our findings show that if enhancement of reputation from completion of a project in the future is taken into account during the VC firms decision-making process, the VC firm will have a stronger willingness to finance the project initially, to refinance the project which run into difficulties during the implementation process and make more effort in implementation of the project. However, the pursuit of social reputation will dilute the VC firms incentive to provide effort for the financial objective.
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How to cite this article
Xiutian Zheng, Yongbin Xu and Lingyan Gu, 2013. Impact of Venture Capital Firms
Reputation on Investment Decisions. Journal of Applied Sciences, 13: 2694-2699.
DOI: 10.3923/jas.2013.2694.2699
URL: https://scialert.net/abstract/?doi=jas.2013.2694.2699
DOI: 10.3923/jas.2013.2694.2699
URL: https://scialert.net/abstract/?doi=jas.2013.2694.2699
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