Time: 13:00-15:00 (UK Time), Wednesday, 27 October 2021
Presenter: Professor Victor Murinde, SOAS University of London, UK
Co-authors: Dr. Xiaoming Ding & Dr. Qiong Ji, Xi‘an Jiaotong-Liverpool University, China
Chair: Professor Victor Murinde, SOAS University of London
Online venue: Click here to join the seminar on Microsoft Teams (For any inquiry about how to join the online seminar, please contact Dr Meng Xie: xm1@soas.ac.uk
Abstract
We study how venture capital (VC) experience, as measured by age, industry of specialization, historical investments, as well as success rate, influences post-IPO performance of portfolio firms in China. We uncover new results which show that VC experience enhances portfolio firm performance through better corporate governance and monitoring. We find that VCbacked firms exhibit better governance outcomes and board processes of their portfolio firms. Moreover, these VC-backed firms have significantly higher probability of not only allocating ownership to senior executives than non-VC-backed firms but also aligning the interests of the executives and the shareholders. Identification concerns are addressed by using instrumental variables. Overall, our study provides investors, VC managers and financial analysts an indepth understanding of the value added by VC experience, derived from VC monitoring and involvement in the governance of the portfolio firms post-listing.
JEL code: G11; G24; G32; G34
Keywords: Venture Capital experience; Post-IPO performance; Corporate governance
Presenter
Professor Victor Murinde
Victor Murinde is the AXA Professor of Global Finance and Director of the Centre for Global Finance at School of Finance and Management, SOAS University of London. He is a financial economist, with more than 25 years’ expertise, post-PhD, mainly involving university research and teaching, but also including senior-level stints at practitioner, policy and consultancy roles for governments and leading international organisations. He has contributed over 100 research papers to the financial economics literature, mainly in the areas of banking and finance, development finance, and financial markets.
Co-authors
Dr. Xiaoming Ding
Xiaoming Ding is Associate Professor of Accounting and Finance at Xi'an Jiao'tong-Liverpool University, China. He received his MSc in Accounting and Finance, MSc in Computer Science, and PhD in Finance from University of Birmingham. His research interests include corporate finance issues; corporate, banking performance and risk analysis; corporate governance issues; financial market risk and management: credit risk and market risk. Other topics include foreign exchange, volatility, sector, liquidity, inflation risks; venture capital; data science, deep learning / machine learning applications in the broad areas finance, especially in the areas of asset pricing, behaviour finance and investment and financing decision making. He is the Principal Investigator of a Jiangsu Social Science Fund project on “Venture Capital Syndication and Internationalisation: Evidence from Jiangsu” and the Principal Investigator of a project on “Status of Suzhou Venture Capital Industry and Policy Implications” funded by the Suzhou Social Science Applied Research Funding Programme.
Dr. Qiong Ji
Qiong Ji is an Assistant Professor of Finance at the School of Intelligent Finance and Business at Xian-Jiaotong Liverpool University, China. Qiong received her PhD from the University of Liverpool. Her research articles are published in international journals such as Journal of Banking and Finance, among others. Qiong's current research focuses on the role of venture capital, asset pricing, corporate governance, corporate investment, and innovation. Other interests include FinTech, crash risk, and climate change.