Intellectual Capital and Firm Performance in the Context of Venture-Capital Syndication Background in China
This paper is intended to investigate the role of Venture-Capital Syndication (VCS) background in the relationship between intellectual capital (IC) and portfolio firm performance (PFP); specifically, this article examines the moderating effect of VCS’s leading firm background and member heterogenei...
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| Format: | Article |
| Language: | English |
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Wiley
2021-01-01
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| Series: | Complexity |
| Online Access: | http://dx.doi.org/10.1155/2021/3425725 |
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| author | Yuzhong Lu Zengrui Tian Guillermo Andres Buitrago Shuiwen Gao Yuanjun Zhao Shuai Zhang |
| author_facet | Yuzhong Lu Zengrui Tian Guillermo Andres Buitrago Shuiwen Gao Yuanjun Zhao Shuai Zhang |
| author_sort | Yuzhong Lu |
| collection | DOAJ |
| description | This paper is intended to investigate the role of Venture-Capital Syndication (VCS) background in the relationship between intellectual capital (IC) and portfolio firm performance (PFP); specifically, this article examines the moderating effect of VCS’s leading firm background and member heterogeneity on the effect of IC on PFP. This study used a modified VAIC model to measure IC to compose a 4-component variable including human capital, structural capital, relational capital, and innovation capital. The data were collected from VCS-backed and listed firms in China during 2014 to 2018 applying the pooled OLS model for hypotheses test, Generalized Method of Moments (GMMs) to reduce endogeneity and unobserved factor control, and also return on equity (ROE) instead of ROA for the robustness test. Empirical results showed that IC and its components can improve PFP for VCS-backed firms in China; in detail, IC showed greater impact on performance of firms invested by foreign lead investors than in private or government VCS, specially reflected in the impact of innovation capital on PFP. Furthermore, IC showed weaker impact on PFP of mixed VCS-backed firms compared to pure VCS-backed firms and showed diminished effect on higher VCS member heterogeneity mainly reflected in the impact of relational capital on firm performance. These findings propose a new way of combining IC and VC to improve firm performance and are beneficial to theoretical development of IC and VC as well as a perspective for VC firm managers to choose suitable partners prior to join a VCS. |
| format | Article |
| id | doaj-art-28b2d0b9e52044f1b462dc9a7e3b7f28 |
| institution | Kabale University |
| issn | 1076-2787 1099-0526 |
| language | English |
| publishDate | 2021-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Complexity |
| spelling | doaj-art-28b2d0b9e52044f1b462dc9a7e3b7f282025-02-03T01:04:13ZengWileyComplexity1076-27871099-05262021-01-01202110.1155/2021/34257253425725Intellectual Capital and Firm Performance in the Context of Venture-Capital Syndication Background in ChinaYuzhong Lu0Zengrui Tian1Guillermo Andres Buitrago2Shuiwen Gao3Yuanjun Zhao4Shuai Zhang5The Glorious Sun School of Business and Management, Donghua University, Shanghai200050, ChinaThe Glorious Sun School of Business and Management, Donghua University, Shanghai200050, ChinaThe Glorious Sun School of Business and Management, Donghua University, Shanghai200050, ChinaThe Glorious Sun School of Business and Management, Donghua University, Shanghai200050, ChinaSchool of Business Administration, Shanghai Lixin University of Accounting and Finance, Shanghai 201209, ChinaUniversity of Greenwich, London SE10 9LS, UKThis paper is intended to investigate the role of Venture-Capital Syndication (VCS) background in the relationship between intellectual capital (IC) and portfolio firm performance (PFP); specifically, this article examines the moderating effect of VCS’s leading firm background and member heterogeneity on the effect of IC on PFP. This study used a modified VAIC model to measure IC to compose a 4-component variable including human capital, structural capital, relational capital, and innovation capital. The data were collected from VCS-backed and listed firms in China during 2014 to 2018 applying the pooled OLS model for hypotheses test, Generalized Method of Moments (GMMs) to reduce endogeneity and unobserved factor control, and also return on equity (ROE) instead of ROA for the robustness test. Empirical results showed that IC and its components can improve PFP for VCS-backed firms in China; in detail, IC showed greater impact on performance of firms invested by foreign lead investors than in private or government VCS, specially reflected in the impact of innovation capital on PFP. Furthermore, IC showed weaker impact on PFP of mixed VCS-backed firms compared to pure VCS-backed firms and showed diminished effect on higher VCS member heterogeneity mainly reflected in the impact of relational capital on firm performance. These findings propose a new way of combining IC and VC to improve firm performance and are beneficial to theoretical development of IC and VC as well as a perspective for VC firm managers to choose suitable partners prior to join a VCS.http://dx.doi.org/10.1155/2021/3425725 |
| spellingShingle | Yuzhong Lu Zengrui Tian Guillermo Andres Buitrago Shuiwen Gao Yuanjun Zhao Shuai Zhang Intellectual Capital and Firm Performance in the Context of Venture-Capital Syndication Background in China Complexity |
| title | Intellectual Capital and Firm Performance in the Context of Venture-Capital Syndication Background in China |
| title_full | Intellectual Capital and Firm Performance in the Context of Venture-Capital Syndication Background in China |
| title_fullStr | Intellectual Capital and Firm Performance in the Context of Venture-Capital Syndication Background in China |
| title_full_unstemmed | Intellectual Capital and Firm Performance in the Context of Venture-Capital Syndication Background in China |
| title_short | Intellectual Capital and Firm Performance in the Context of Venture-Capital Syndication Background in China |
| title_sort | intellectual capital and firm performance in the context of venture capital syndication background in china |
| url | http://dx.doi.org/10.1155/2021/3425725 |
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