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How does venture capital cross-border syndication spur corporate innovation? Evidence from China

In recent years, venture capital (VC) cross-border syndication has shown an obvious growth trend. Based on the existing studies, this paper explores the impact of VC cross-border syndication on corporate innovation. We also examine the mediating roles of cross-border quadratic relationship closure (...

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Autores principales: Hao, Haixia, Guo, Lihong, Dong, Jianwei
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Frontiers Media S.A. 2022
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9355533/
https://www.ncbi.nlm.nih.gov/pubmed/35936306
http://dx.doi.org/10.3389/fpsyg.2022.921168
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author Hao, Haixia
Guo, Lihong
Dong, Jianwei
author_facet Hao, Haixia
Guo, Lihong
Dong, Jianwei
author_sort Hao, Haixia
collection PubMed
description In recent years, venture capital (VC) cross-border syndication has shown an obvious growth trend. Based on the existing studies, this paper explores the impact of VC cross-border syndication on corporate innovation. We also examine the mediating roles of cross-border quadratic relationship closure (CBQRC) formed by the strategic cooperation relationship between the respective portfolio companies of domestic and foreign VCs. This paper conducted an empirical analysis to test our hypotheses using a sample of first-round investments in domestic firms by domestic VC firms from 2014 to 2016. Results show that the more investment events of VC cross-border syndication or the more partners of VC cross-border syndication, the more likely it is to have a significant positive impact on the innovation of domestic portfolio companies. CBQRC plays a mediating role between VC cross-border syndication on corporate innovation. Results remain robust after removing endogeneity using the instrumental variables approach and removing sample selection bias using Heckman two-stage regression. Results deepen the understanding of the relationship between VC cross-border syndication and corporate innovation and provide essential guidance to domestic VC firms promoting corporate innovation in open partnerships.
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spelling pubmed-93555332022-08-06 How does venture capital cross-border syndication spur corporate innovation? Evidence from China Hao, Haixia Guo, Lihong Dong, Jianwei Front Psychol Psychology In recent years, venture capital (VC) cross-border syndication has shown an obvious growth trend. Based on the existing studies, this paper explores the impact of VC cross-border syndication on corporate innovation. We also examine the mediating roles of cross-border quadratic relationship closure (CBQRC) formed by the strategic cooperation relationship between the respective portfolio companies of domestic and foreign VCs. This paper conducted an empirical analysis to test our hypotheses using a sample of first-round investments in domestic firms by domestic VC firms from 2014 to 2016. Results show that the more investment events of VC cross-border syndication or the more partners of VC cross-border syndication, the more likely it is to have a significant positive impact on the innovation of domestic portfolio companies. CBQRC plays a mediating role between VC cross-border syndication on corporate innovation. Results remain robust after removing endogeneity using the instrumental variables approach and removing sample selection bias using Heckman two-stage regression. Results deepen the understanding of the relationship between VC cross-border syndication and corporate innovation and provide essential guidance to domestic VC firms promoting corporate innovation in open partnerships. Frontiers Media S.A. 2022-07-22 /pmc/articles/PMC9355533/ /pubmed/35936306 http://dx.doi.org/10.3389/fpsyg.2022.921168 Text en Copyright © 2022 Hao, Guo and Dong. https://creativecommons.org/licenses/by/4.0/This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
spellingShingle Psychology
Hao, Haixia
Guo, Lihong
Dong, Jianwei
How does venture capital cross-border syndication spur corporate innovation? Evidence from China
title How does venture capital cross-border syndication spur corporate innovation? Evidence from China
title_full How does venture capital cross-border syndication spur corporate innovation? Evidence from China
title_fullStr How does venture capital cross-border syndication spur corporate innovation? Evidence from China
title_full_unstemmed How does venture capital cross-border syndication spur corporate innovation? Evidence from China
title_short How does venture capital cross-border syndication spur corporate innovation? Evidence from China
title_sort how does venture capital cross-border syndication spur corporate innovation? evidence from china
topic Psychology
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9355533/
https://www.ncbi.nlm.nih.gov/pubmed/35936306
http://dx.doi.org/10.3389/fpsyg.2022.921168
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