Li, (Michael) Hui
[VerfasserIn]
;
Wu, Xiaohui
[Sonstige Person, Familie und Körperschaft];
Ye, Ying
[Sonstige Person, Familie und Körperschaft];
Zeng, Qi
[Sonstige Person, Familie und Körperschaft]
Venture Capitalists' Value-Enhancing Activities Under Weak Protection of Law
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 19, 2016 erstellt
Beschreibung:
Using two sets of hand-collected survey data, we studied the value-adding activities of venture capitalists (VCs) operating in the weak legal environment of China. VCs exert value-enhancing efforts in addition to monitoring through trust considerations. We identified the effects of three types of trusts, strategic reputation-based (C-trust), knowledge-based (K-trust), and identification-based (I-trust), on a company's performance while investing venture capital in China. We find that the C-trust acts only through increased use of complementary resources to improve a firm's performance. K-trust and I-trust can also stimulate in two other ways by reducing transaction costs and improving team-spirit