Endorsement and firm financing: Evidence from government venture capital market in China

IF 5.5 3区管理学 Q1 BUSINESS, FINANCE

British Accounting Review Pub Date : 2025-05-01 DOI:10.1016/j.bar.2024.101471

Xiaoxia Huang , Yanchen Jiang , Sushanta Mallick

引用次数: 0

Abstract

This study investigates the effect of government venture capital (GVC) investment on firm financing and its underlying mechanism, utilizing 31,299 firm-year observations from 2008 to 2022 in China. The findings reveal that GVC investment enhances target firms’ equity financing, and it is the "stamp of endorsement" by the GVC investment that enhances equity financing for firms. Through a series of tests, the mechanism for the impact of GVC investment on equity financing is established via increased government subsidies and reduced cost of equity. In addition, firms with higher market awareness about GVC and privately-owned firms benefit more in enhancing their equity financing; this further confirms that financing enhancement originates from the government's role through endorsement mechanism in venture capital investment. The results remain robust after several robustness checks.

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背书与企业融资：来自中国政府风险投资市场的证据

本文利用2008年至2022年中国31,299个企业年的观察数据，研究了政府风险投资对企业融资的影响及其潜在机制。研究结果表明，全球价值链投资促进了目标企业的股权融资，并且是全球价值链投资的“背书”促进了企业的股权融资。通过一系列的测试，通过增加政府补贴和降低股权成本，建立了全球价值链投资对股权融资的影响机制。此外，市场对全球价值链的认知度越高的企业和民营企业在加强股权融资方面获益越多；这进一步证实了融资的增强源于政府在风险投资中通过背书机制发挥的作用。经过多次稳健性检验后，结果仍然是稳健性的。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

British Accounting Review BUSINESS, FINANCE-

CiteScore

8.60

自引率

3.90%

发文量

审稿时长

76 days

期刊介绍： The British Accounting Review*is pleased to publish original scholarly papers across the whole spectrum of accounting and finance. The journal is eclectic and pluralistic and contributions are welcomed across a wide range of research methodologies (e.g. analytical, archival, experimental, survey and qualitative case methods) and topics (e.g. financial accounting, management accounting, finance and financial management, auditing, public sector accounting, social and environmental accounting; accounting education and accounting history), evidence from UK and non-UK sources are equally acceptable.