Original scientific paper
https://doi.org/10.1080/1331677X.2022.2142637
Incubator role of foreign venture capital: evidence from overseas listing of enterprises
Xinzhou Qi
Zhong Ning
Meng Qin
Abstract
This study uses the Granger-causality test and a sub-sample timevarying
rolling window to explore the dynamic relationship
between foreign venture capital (FVC) and overseas listing of
Chinese enterprises (COLC), and takes into account the changes
of legal environment and accounting standards. The results
showed that from Q1 2012 to Q4 2014, the lower the FVC, the
lower the COLC. From Q1 2008 to Q4 2008, the higher the FVC,
the higher the COLC. Both positive and negative effects exist
from COLC to FVC. Specifically, the more listed enterprises there
are, the more foreign venture capitalists trust the potential of
Chinese enterprises and the market. Thus, the corresponding FVC
was high. Furthermore, the negative correlation between COLC
and FVC was due to political factors and epidemics. Many enterprises
improve their internationalization and profitability by
attracting FVC to Chinese enterprises. Therefore, this study helps
foreign investors achieve a greater return on investment in China
and enables enterprises to improve their international reputations
and realize overseas listings. In addition, the results can provide
suggestions for the government to issue relevant measures conducive
to maintaining the stability of the domestic market and
the balanced development of domestic and foreign markets.
Keywords
Overseas listing; foreign venture capital; rolling window; dynamic relationship
Hrčak ID:
306775
URI
Publication date:
30.4.2023.
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