Venture Capital and Dividend Policy
In this paper, we empirically examine the impact of venture capital investment on the dividend policy of the invested companies using a sample of list companies from China’s ChiNext market during the period 2014 to 2019. Our empirical results show that different types of VC investments have differen...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2024-03-01
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| Series: | International Journal of Financial Studies |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2227-7072/12/1/27 |
| _version_ | 1797240757572075520 |
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| author | Yi Tan Xiaoli Wang Xiaoyu Fu |
| author_facet | Yi Tan Xiaoli Wang Xiaoyu Fu |
| author_sort | Yi Tan |
| collection | DOAJ |
| description | In this paper, we empirically examine the impact of venture capital investment on the dividend policy of the invested companies using a sample of list companies from China’s ChiNext market during the period 2014 to 2019. Our empirical results show that different types of VC investments have different impacts on the dividend policies of the invested companies. To be specific, we found independent venture capital companies (IVCs) promote the company’s dividend payment and increase the level of dividend payments while corporate venture capital (CVC) inhibits the company’s dividend payment. The joint participation of multiple types of venture capital investment (syndication) also increases the company’s dividend distribution. Our main contributions are two-fold. First, we provide a comprehensive analysis in the field of VC and dividend policy; second, we differentiate VC from the perspective of investment objectives and examine its different impacts on the dividend policies of the invested companies. |
| first_indexed | 2024-04-24T18:12:30Z |
| format | Article |
| id | doaj.art-7f5322b622134cc887fb5d22c390a706 |
| institution | Directory Open Access Journal |
| issn | 2227-7072 |
| language | English |
| last_indexed | 2024-04-24T18:12:30Z |
| publishDate | 2024-03-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | International Journal of Financial Studies |
| spelling | doaj.art-7f5322b622134cc887fb5d22c390a7062024-03-27T13:44:49ZengMDPI AGInternational Journal of Financial Studies2227-70722024-03-011212710.3390/ijfs12010027Venture Capital and Dividend PolicyYi Tan0Xiaoli Wang1Xiaoyu Fu2Antai Collge of Economics & Management, Shanghai Jiaotong University, 1954 Huashan Road, Shanghai 200030, ChinaSchool of Management, Marist College, Poughkeepsie, NY 12601, USAAntai Collge of Economics & Management, Shanghai Jiaotong University, 1954 Huashan Road, Shanghai 200030, ChinaIn this paper, we empirically examine the impact of venture capital investment on the dividend policy of the invested companies using a sample of list companies from China’s ChiNext market during the period 2014 to 2019. Our empirical results show that different types of VC investments have different impacts on the dividend policies of the invested companies. To be specific, we found independent venture capital companies (IVCs) promote the company’s dividend payment and increase the level of dividend payments while corporate venture capital (CVC) inhibits the company’s dividend payment. The joint participation of multiple types of venture capital investment (syndication) also increases the company’s dividend distribution. Our main contributions are two-fold. First, we provide a comprehensive analysis in the field of VC and dividend policy; second, we differentiate VC from the perspective of investment objectives and examine its different impacts on the dividend policies of the invested companies.https://www.mdpi.com/2227-7072/12/1/27venture capitalindependent venture capitalcorporate venture capitaldividend policy |
| spellingShingle | Yi Tan Xiaoli Wang Xiaoyu Fu Venture Capital and Dividend Policy International Journal of Financial Studies venture capital independent venture capital corporate venture capital dividend policy |
| title | Venture Capital and Dividend Policy |
| title_full | Venture Capital and Dividend Policy |
| title_fullStr | Venture Capital and Dividend Policy |
| title_full_unstemmed | Venture Capital and Dividend Policy |
| title_short | Venture Capital and Dividend Policy |
| title_sort | venture capital and dividend policy |
| topic | venture capital independent venture capital corporate venture capital dividend policy |
| url | https://www.mdpi.com/2227-7072/12/1/27 |
| work_keys_str_mv | AT yitan venturecapitalanddividendpolicy AT xiaoliwang venturecapitalanddividendpolicy AT xiaoyufu venturecapitalanddividendpolicy |