Differences in Performance of Independent and Finance-Affiliated Venture Capital Firms

Posted: 18 Apr 2001

See all articles by Kangmao Wang

Kangmao Wang

Zhejiang University - School of Business Administration

Clement K. Wang

affiliation not provided to SSRN

Qing Lu

National University of Singapore (NUS) - Department of Accounting

Abstract

We examine the differences in the investment behaviors of independent and finance-affiliated venture capital firms (VCFs). We find differences in internal management mechanisms and staff backgrounds lead to external performance differences. Using VC-backed companies listed in Singapore as our sample, we find significant differences between these two types of VCFs in industry preference, investment duration, VCF syndication, number of board seats, initial underpricing, and long-term market returns. Independent VCFs add more value to their portfolios. Thus, we conclude that the participation of independent VCFs is an important corporate-level factor for the success of the venture capital market.

JEL Classification: G12, G15, G23, G32

Suggested Citation

Wang, Kangmao and Wang, Clement K. and Lu, Qing, Differences in Performance of Independent and Finance-Affiliated Venture Capital Firms. Available at SSRN: https://ssrn.com/abstract=246622

Kangmao Wang (Contact Author)

Zhejiang University - School of Business Administration ( email )

20 Yugu Road
Hangzhou 310027
China
86-571-8796-8455 (Phone)
86-571-8796-8455 (Fax)

Clement K. Wang

affiliation not provided to SSRN

No Address Available

Qing Lu

National University of Singapore (NUS) - Department of Accounting

1 Business Link
Singapore, 117592
Republic of Singapore

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
1,263
PlumX Metrics