Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/26948
Title: Why do venture capital firms exist : an institution-based rent-seeking perspective and Chinese evidence
Authors: Lu, H 
Tan, Y
Huang, H 
Issue Date: 2011
Source: Asia Pacific journal of management, 2011, p. 1-16
Abstract: This paper is a theory development to Amit, Brander, and Zott (1998, Journal of Business Venturing, 13: 441-466) on the nature of venture capital firms. In their paper, the authors argue that venture capital firms exist because they fill a market niche by developing the ability to overcome extreme information asymmetry embedded in high-risk entrepreneurial firms. However, this theory encounters difficulties in explaining a variety of organizational and behavioral divides among venture capitalists in different contexts and over time. In this paper, we apply the institution-based view to reveal the nature of venture capital. We argue that it is the venture capitalists' capability to capture economic rents from the institutional environment that distinguish them from other financial intermediaries. We show the connection of our perspective with the conventional view as well as the usefulness of this theory in explaining the development of the venture capital industry in China.
Keywords: China
Institutions
Rent-seeking
Strategy
Venture capital
Publisher: Springer
Journal: Asia Pacific journal of management 
ISSN: 0217-4561
EISSN: 1572-9958
DOI: 10.1007/s10490-011-9262-8
Appears in Collections:Journal/Magazine Article

Access
View full-text via PolyU eLinks SFX Query
Show full item record

SCOPUSTM   
Citations

25
Last Week
0
Last month
0
Citations as of Sep 6, 2020

WEB OF SCIENCETM
Citations

19
Last Week
0
Last month
0
Citations as of Sep 25, 2020

Page view(s)

186
Last Week
0
Last month
Citations as of Sep 27, 2020

Google ScholarTM

Check

Altmetric


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.