Cultural differences and cross-border venture capital syndication

• 成果类型: Article
• 署名作者: Dai, Na; Nahata, Rajarishi
• 署名单位: State University of New York (SUNY) System; University at Albany, SUNY; City University of New York (CUNY) System; Baruch College (CUNY)
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/jibs.2015.32
• 发表日期: 2016
• 页码: 140-169
• 关键词: Cultural distance; venture capital; Syndicates; Cross-border investments; exploration/exploitation; venture capital exits

摘要

We examine cross-border syndication in investments led by foreign venture capitalists (VCs) focusing on the potential correlation between cultural differences and the formation of VC syndicates. Contrary to the risk-sharing motive, we find that a greater cultural disparity between the countries of investors and their companies is actually associated with smaller VC syndicates. This is driven largely by lesser local investor representation in foreign VC-led syndicates. However, certain cultural disparity-related syndication strategies, such as the involvement of locally experienced foreign VCs or syndicate members from culturally similar countries, are associated with greater presence of local VCs who provide valuable monitoring services. We further show that these culture-linked syndication approaches are significantly correlated with VC financing and monitoring strategies in cross-border investments and their eventual success.