International Conference on Engineering and Business Management (EBM 2010 PAPERBACK)

Chengdu,China,China,3.24-3.26,2010

ISBN: 978-1-935068-05-1 Scientific Research Publishing, USA

Paperback 6066pp Pub. Date: March 2010

Category: Engineering

Price: $280

Title: An Empirical Study of Relationship between Venture Capitalists Strategic Involvement and Portfolio Companies? Growth Performance
Source: International Conference on Engineering and Business Management (EBM 2010 PAPERBACK) (pp 616-619)
Author(s): Erli Liu, College of Management,Guangxi University for Nationalities, Nanning, P.R.China, 530006
Yongqing Chen, College of Management,Guangxi University for Nationalities, Nanning, P.R.China, 530006
Abstract: Abstract: This paper examines the relationship between venture capitalists strategic involvement and portfolio companies' growth performance. The authors develop a research framework for analyzing the impact of venture capitalists strategic involvement on portfolio companies' growth performance, and then testify proposed hypotheses by applying the survey data from venture capital firms. The results of study indicate that venture capitalists strategic involvement in the post-investment is crucial factor that affects the portfolio companies’ growth performance. Additionally, assisting with strategic issues and helping obtaining alternative sources of financing have considerable positive effects on portfolio companies' competitive performance and potential performance. Our study provides implications for both venture capitalists and entrepreneurs in cooperating with each other.
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