Effects of Economic Policy Uncertainty on the Investment Behavior of Venture Capital Institutions: Evidence from China

Venture capital (VC) has played an important financial supplementary role in the development of high-tech enterprises. With the intensification of economic policy uncertainty, VC investment behavior has been affected to a certain extent. Under the framework of the impact of economic policy uncertain...

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Main Authors: Shiwei Yi, Yifan Liao, Qiang Zhang
Format: Article
Language:English
Published: Wiley 2022-01-01
Series:Complexity
Online Access:http://dx.doi.org/10.1155/2022/2528464
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author Shiwei Yi
Yifan Liao
Qiang Zhang
author_facet Shiwei Yi
Yifan Liao
Qiang Zhang
author_sort Shiwei Yi
collection DOAJ
description Venture capital (VC) has played an important financial supplementary role in the development of high-tech enterprises. With the intensification of economic policy uncertainty, VC investment behavior has been affected to a certain extent. Under the framework of the impact of economic policy uncertainty (EPU) on general corporate investment behavior, this article examines the impact of EPU on the investment behavior of VC institutions from four aspects, namely, investment quantity, investment phase, investment industry, and investment region. The study finds that in China, EPU has a good news effect, and its intensification can boost the investment quantity of VC institutions and stimulate institutions to choose more specialized investment strategies in terms of investment phase, investment industry, and investment region. The impact of EPU on the investment behavior of VC institutions changes with the investment state of the institutions. The larger the investment quantity of the VC institutions, the greater the promotion effect. VC institutions with a higher degree of investment concentration will pay more attention to specialized investment strategies.
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publishDate 2022-01-01
publisher Wiley
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series Complexity
spelling doaj-art-3a623c3b20d34da8b4c113971d0f99842025-08-20T02:08:00ZengWileyComplexity1099-05262022-01-01202210.1155/2022/2528464Effects of Economic Policy Uncertainty on the Investment Behavior of Venture Capital Institutions: Evidence from ChinaShiwei Yi0Yifan Liao1Qiang Zhang2College of Finance and StatisticsCollege of Finance and StatisticsCollege of Finance and StatisticsVenture capital (VC) has played an important financial supplementary role in the development of high-tech enterprises. With the intensification of economic policy uncertainty, VC investment behavior has been affected to a certain extent. Under the framework of the impact of economic policy uncertainty (EPU) on general corporate investment behavior, this article examines the impact of EPU on the investment behavior of VC institutions from four aspects, namely, investment quantity, investment phase, investment industry, and investment region. The study finds that in China, EPU has a good news effect, and its intensification can boost the investment quantity of VC institutions and stimulate institutions to choose more specialized investment strategies in terms of investment phase, investment industry, and investment region. The impact of EPU on the investment behavior of VC institutions changes with the investment state of the institutions. The larger the investment quantity of the VC institutions, the greater the promotion effect. VC institutions with a higher degree of investment concentration will pay more attention to specialized investment strategies.http://dx.doi.org/10.1155/2022/2528464
spellingShingle Shiwei Yi
Yifan Liao
Qiang Zhang
Effects of Economic Policy Uncertainty on the Investment Behavior of Venture Capital Institutions: Evidence from China
Complexity
title Effects of Economic Policy Uncertainty on the Investment Behavior of Venture Capital Institutions: Evidence from China
title_full Effects of Economic Policy Uncertainty on the Investment Behavior of Venture Capital Institutions: Evidence from China
title_fullStr Effects of Economic Policy Uncertainty on the Investment Behavior of Venture Capital Institutions: Evidence from China
title_full_unstemmed Effects of Economic Policy Uncertainty on the Investment Behavior of Venture Capital Institutions: Evidence from China
title_short Effects of Economic Policy Uncertainty on the Investment Behavior of Venture Capital Institutions: Evidence from China
title_sort effects of economic policy uncertainty on the investment behavior of venture capital institutions evidence from china
url http://dx.doi.org/10.1155/2022/2528464
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AT qiangzhang effectsofeconomicpolicyuncertaintyontheinvestmentbehaviorofventurecapitalinstitutionsevidencefromchina