The collusion behavior of venture capitalists and entrepreneurs | ResearchBunny

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Abstract

This research investigates the collusion behavior between venture capitalists and entrepreneurs in China, focusing on the influence of "guanxi" (social relationships). Using data from GEM-listed companies (2009-2021), the study finds that "guanxi" facilitates collusion, leading to increased entrepreneurial self-interest, higher venture capitalist returns, harm to minority shareholders, and increased corporate operational risk. Equity incentives are shown to mitigate this collusion.

Publisher

Humanities & Social Sciences Communications

Published On

Oct 05, 2024

Authors

Liping Li, Qisheng Chen, Ximeng Jia, Jin Chen, Enrique Herrera-Viedma

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