Determinants of Venture Capital Investments in Emerging Markets

50 Pages Posted: 13 May 2015 Last revised: 1 Nov 2016

See all articles by Alexander Peter Groh

Alexander Peter Groh

EMLYON Research Centre for Entrepreneurial Finance; EMLYON Business School

Johannes Wallmeroth

EMLYON Research Centre for Entrepreneurial Finance; EMLYON Business School; University of Lyon 3

Date Written: May 12, 2015

Abstract

Jeng and Wells (2000) initialized the examination of venture capital (VC) determinants across countries. Meanwhile, we enlarge their scope using aggregated VC funding in 118 countries, 78 being considered emerging markets, using panel data from 2000 to 2013. We show that M&A activity, legal rights and investor protection, innovation, IP protection, corruption and also corporate taxes and unemployment have impact. We reveal the economic magnitude and direction of impact of the determinants to be different for the two country categories for several parameters, enhancing previous research by emphasizing that VC investment drivers can be different for developed and developing countries.

Keywords: Emerging Markets, Venture Capital, Venture Capital Determinants

JEL Classification: C23, F21, G23, G24, O16, O57

Suggested Citation

Groh, Alexander Peter and Wallmeroth, Johannes, Determinants of Venture Capital Investments in Emerging Markets (May 12, 2015). Available at SSRN: https://ssrn.com/abstract=2605452 or http://dx.doi.org/10.2139/ssrn.2605452

Alexander Peter Groh

EMLYON Research Centre for Entrepreneurial Finance ( email )

23 Avenue Guy de Collongue
Ecully, 69132
France

EMLYON Business School ( email )

23 Avenue Guy de Collongue
Ecully, 69132
France

Johannes Wallmeroth (Contact Author)

EMLYON Research Centre for Entrepreneurial Finance

23 Avenue Guy de Collongue
Ecully, 69132
France

EMLYON Business School

23 Avenue Guy de Collongue
Ecully, 69132
France

University of Lyon 3

6 cours Albert Thomas
Lyon, 69008
France

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