ABSTRACT
This paper analyzes the effects of corporate venture capital (CVC) and independent venture capital (IVC) backing on technological innovation and value creation in invested companies. Using data on Chinese listed companies, we show that CVC investment can induce higher firm value than can IVC investment. By considering different dimensions of complementary assets, technological fit, geographical proximity, and product market relations, we explore the mechanism through which CVC contributes to innovation and value creation in invested companies in China.
Disclosure statement
No potential conflict of interest was reported by the authors.
ORCID
Jun Yang http://orcid.org/0000-0002-5796-7672
Notes
1 Due to the modest sample size, we employ one-to-one matching with replacement, and ties are allowed. As a robustness check, we also conduct one-to-four nearest neighbour matching, and find that the results do not change significantly.