Impact of venture capital on innovation in key & core technology firms

IF 4.8 2区经济学 Q1 BUSINESS, FINANCE

Pacific-Basin Finance Journal Pub Date : 2025-03-24 DOI:10.1016/j.pacfin.2025.102756

Song Wang , Chuang Ma , Mei Yu , Xin Guo

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Abstract

Innovation holds a core position in development and serves as a pivotal force for driving China's economic transformation towards high-quality development. We select firms listed on the Shanghai Stock Exchange Science and Technology Innovation Board (SSE STAR Market) from 2019 to 2024 to investigate the impact of venture capital (VC) involvement on corporate innovation and analyze its mechanisms. The results indicate that earlier investment and higher shareholding by venture capital in STAR Market firms have significant effects on their innovation. Meanwhile, early-stage VC investment and shareholding have different effects on the innovation capabilities of STAR Market firms. Mechanism analysis reveals that venture capital promotes corporate innovation more significantly in firms facing higher industry competition and stronger financing constraints. Further heterogeneity analysis of STAR Market firms adhering to different listing standards shows that earlier investment and shareholding have a more pronounced promoting effect on firms listed under the second set of standards.

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来源期刊

Pacific-Basin Finance Journal BUSINESS, FINANCE-

CiteScore

6.80

自引率

6.50%

发文量

157

期刊介绍： The Pacific-Basin Finance Journal is aimed at providing a specialized forum for the publication of academic research on capital markets of the Asia-Pacific countries. Primary emphasis will be placed on the highest quality empirical and theoretical research in the following areas: • Market Micro-structure; • Investment and Portfolio Management; • Theories of Market Equilibrium; • Valuation of Financial and Real Assets; • Behavior of Asset Prices in Financial Sectors; • Normative Theory of Financial Management; • Capital Markets of Development; • Market Mechanisms.