Impact of local bias on exit performance-Based on empirical analysis of Chinese venture capital firms

Wang Xi; Dang Xinghua

Science Research Management ›› 2014, Vol. 35 ›› Issue (2) : 111-118.

Wang Xi^1,2, Dang Xinghua¹

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Abstract

Local bias of venture capital firms isan important feature for spatial distribution of VC portfolios. Based on a large sample of Chinese venture capital investments between 2000 and 2011 from CVSource database, this paper examines the impact of local bias on successful exit and exit speed respectively use the Probit model and Cox proportional hazard model. We find that local bias has significant negative impact on the successful exit and exit speed, indicating that the venture capital firms with weak local bias has higher performance.

Key words

Venture capital firms / local bias / successful exit / exit speed

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Wang Xi, Dang Xinghua. Impact of local bias on exit performance-Based on empirical analysis of Chinese venture capital firms[J]. Science Research Management. 2014, 35(2): 111-118

References

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