Second-tier Stock Exchanges and Growth of High-Tech Entrepreneurship

75 Pages Posted: 16 Jun 2023 Last revised: 20 Nov 2024

See all articles by Huasheng Gao

Huasheng Gao

Fudan University

Po-Hsuan Hsu

National Tsing Hua University - Department of Quantitative Finance; National University of Singapore (NUS) - Asian Bureau of Finance and Economic Research (ABFER)

Yuxi Wang

Shanghai Jiao Tong University (SJTU) - Antai College of Economics and Management

Date Written: November 20, 2024

Abstract

We examine the role of second-tier stock exchanges in high-tech entrepreneurship from a global perspective. Using a country-industry-year panel of 217 countries, we find a significant increase in high-tech entrepreneurial activities following the launches of such markets. This relation is stronger in industries more dependent on second-tier markets ex ante, which supports a causal interpretation, and is stronger in countries whose second-tier markets are more successful ex post. We further show that second-tier stock exchanges promote high-tech entrepreneurship by encouraging talents to become entrepreneurs, by promoting venture investment, and by enhancing the trading of intellectual property. We present comprehensive evidence for the real effects of second-tier stock exchanges in terms of improving domestic entrepreneurship and innovation.

Keywords: entrepreneurship, second-tier stock exchanges, inventors, innovation, intellectual property JEL codes: G15, L26, N20, O34

JEL Classification: G15, L26, N20, O34

Suggested Citation

Gao, Huasheng and Hsu, Po-Hsuan and Wang, Yuxi, Second-tier Stock Exchanges and Growth of High-Tech Entrepreneurship (November 20, 2024). Available at SSRN: https://ssrn.com/abstract=4470564 or http://dx.doi.org/10.2139/ssrn.4470564

Huasheng Gao

Fudan University ( email )

220 Handan Road
Shanghai, 200433
China
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HOME PAGE: http://www.huashenggao.net

Po-Hsuan Hsu (Contact Author)

National Tsing Hua University - Department of Quantitative Finance ( email )

101, Section 2, Kuang-Fu Road
Hsinchu, Taiwan 300
China

National University of Singapore (NUS) - Asian Bureau of Finance and Economic Research (ABFER) ( email )

BIZ 2 Storey 4, 04-05
1 Business Link
Singapore, 117592
Singapore

Yuxi Wang

Shanghai Jiao Tong University (SJTU) - Antai College of Economics and Management ( email )

No.1954 Huashan Road
Shanghai Jiao Tong University
Shanghai, Shanghai 200030
China

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