4152 
4739Using Chinese firms listed globally from 2000 to 2015 as a sample, this paper examines the impact of FVC on firm internationalization, and whether the impact is related to the process of listing and the location of listing. Our results show that, compared with domestic venture capital（DVC）, FVC significantly improves the possibility of overseas listing, which is more pronounced before the opening of the domestic Growth Enterprises Market Board. Firm internationalization is the main channel for FVC to affect overseas listing. FVC accelerates firm internationalization to achieve the exit goal of overseas listing. However, the positive impact of FVC on firm internationalization is not sustainable, and the impact reaches the highest when it comes to the listing year, and has a negative impact after successful listing. This relationship is especially manifested in overseas listed firms. These findings suggest that compared with firm internationalization, FVC pays more attention to overseas listing. The internationalization process promoted by FVC is opportunistic internationalization for the purpose of overseas listing, but not strategic internationalization. Our paper reveals the dynamic impact of FVC on firm internationalization. Previous literature holds that FVC plays a significant positive role in promoting firm internationalization. Contrary to popular belief, our paper finds that the impact of FVC on firm internationalization is closely related to the process of firm overseas listing, which shows that the impact of FVC on firm internationalization is dynamic. Also, our paper explores the main influencing factors of Chinese firms’ overseas listing. The motivation of firm overseas listing is controversial in theory. Our results show that there is an alternative relationship between overseas listing and domestic listing, and overseas listing has no significant effect in promoting firm internationalization. We can conclude that compared with the “internationalization hypothesis” and the “corporate governance hypothesis”, the “financing hypothesis” and the “private benefits hypothesis” can better explain the motivation of Chinese firms’ overseas listing. Lastly, our paper demonstrates the role of VC when firms choose the listing location and timing. By accelerating firm internationalization, FVC realizes the purpose of rapid exit by overseas listing.
/ Journals / Foreign Economics & Management
Foreign Economics & Management
LiZengquan, Editor-in-Chief
ZhengChunrong, Vice Executive Editor-in-Chief
YinHuifang HeXiaogang LiuJianguo, Vice Editor-in-Chief
Foreign Venture Capital, Overseas Listing and Firm Internationalization
Foreign Economics & Management Vol. 42, Issue 04, pp. 123 - 138 (2020) DOI:10.16538/j.cnki.fem.20200110.001
Summary
References
Summary
[1] Chen Limin, Wang Xiaoxia. Internationalization and the improvement of firm’s performance: A study based on integration Meta- analysis and Meta-regression approaches [J]. The Journal of World Economy, 2017, (2): 101-126.
[2] Dong Jing, Wang Li, Wu You. The involvement of venture capital and the internationalization of entrepreneurial firms: An empirical study of based on China’s listed high-tech companies [J]. Journal of Finance and Economics, 2017, (4): 120-132.
[3] Li Feng, Dong Yan. Private benefits of control and the foreign-listing decision: Based on the data of domestic company listed in Hong Kong [J]. China Economic Quarterly, 2016, (1): 415-440.
[4] Song Yuanyang, Li Yuanxu, Wang Yulu. Firm resources, ownership and internationalization—Evidence from Chinese manufacturing listed companies [J]. Management Review, 2011, (2): 53-59, 92.
[5] Tan Yi, Tang Linlu. A research on the factors of cross-border venture capital performance in China[J] .Science Research Management, 2016, (10): 1-8.
[6] Wang Huacheng Li Zhijie, Sun Jian. The influence of governance mechanism on corporate value for enterprises listed abroad—from the Transmission effect of financing decisions perspective[J]. Accounting Research, 2008, (7): 65-72.
[7] Yin Guojun, Zeng Kexin. The location choice of foreign venture capital in China[J]. Science Research Management. 2013, (3): 75-83.
[8] Barney J. Firm resources and sustained competitive advantage[J]. Journal of Management, 1991, 17(1): 99-120.
[9] Bell R G, Moore C B, Al-Shammari H A. Country of origin and foreign IPO legitimacy: Understanding the role of geographic scope and insider ownership[J]. Entrepreneurship: Theory and Practice, 2008, 32(1): 185-202.
[10] Berkman H, Nguyen N H. Domestic liquidity and cross-listing in the United States[J]. Journal of Banking & Finance, 2010, 34(6): 1139-1151.
[11] Cheng C, Schwienbacher A. Venture capital investors and foreign listing choices of Chinese companies[J]. Emerging Markets Review, 2016, 29: 42-67.
[12] Cumming D, Knill A, Syvrud K. Do international investors enhance private firm value? Evidence from venture capital[J]. Journal of International Business Studies, 2016, 47(3): 347-373.
[13] Dai N, Jo H, Kassicieh S. Cross-border venture capital investments in Asia: Selection and exit performance[J]. Journal of Business Venturing, 2012, 27(6): 666-684.
[14] Fernhaber S A, McDougall-Covin P P. Venture capitalists as catalysts to new venture internationalization: The impact of their knowledge and reputation resources [J]. Entrepreneurship: Theory and Practice, 2009, 33(1): 277-295.
[15] Filatotchev I, Piesse J. R&D, Internationalization and growth of newly listed firms: European evidence[J]. Journal of International Business Studies, 2009, 40(8): 1260-1276.
[16] Lockett A, Wright M, Burrows A, et al. The export intensity of venture capital backed companies[J]. Small Business Economics, 2008, 31(1): 39-58.
[17] Mäkelä M M, Maula M V J. Cross-border venture capital and new venture internationalization: An isomorphism perspective[J]. Venture Capital, 2005, 7(3): 227-257.
[18] Moore C B, Bell R G, Filatotchev I. Institutions and foreign IPO firms: The Effects of “home”and “host”country institutions on performance[J]. Entrepreneurship: Theory and Practice, 2010, 34(3): 469-490.
Cite this article
Peng Tao, Huang Fuguang, Li Ya, et al. Foreign Venture Capital, Overseas Listing and Firm Internationalization[J]. Foreign Economics & Management, 2020, 42(4): 123-138.
Export Citations as:
For
