The paper Venture Capital Experience, Investment Behavior, and Survival of Startup Technology Companies: A Quasi-Natural Experiment Based on Venture Capital Tax Incentives by Professor Zhou Mingshan from the School of Finance at Zhongnan University of Economics and Law (corresponding author) and co-author Fan Linlin from the School of Finance at Southwestern University of Finance and Economics was published in Volume 26, Issue 12 of the Journal of Management Sciences in 2023. The Journal of Management Sciences is classified as a Class A journal in the field of management by Zhongnan University of Economics and Law.

Abstract: Starting from the perspective of heterogeneous venture capital experience, this study examines the behavioral strategies and investment performance of typical venture capital and arbitrage venture capital based on the tax incentive policy (Circular [2017] No. 38) from 2005 to early 2020, using startup companies as samples. The research indicates that in project selection and post-investment management strategies, experienced venture capitalists adopt a high-risk, high-value-added strategy to meet the policy condition of holding equity for 2 years, while inexperienced venture capitalists tend to choose a low-risk, low-value-added strategy. In terms of investment duration, inexperienced venture capitalists tend to quickly exit after holding equity for 2 years, leading to a significant decrease in investment duration, whereas experienced venture capitalists do not engage in term manipulation. Regarding investment performance, only startups invested by experienced venture capitalists show a significantly higher probability of survival. This study provides theoretical basis and directional guidance for the government to cultivate specialized, refined, new enterprises using fiscal and tax industrial policies.

Keywords: venture capital; experience; investment behavior; tax incentives; enterprise surviva

Author Biography

Zhou Mingshan, born in October 1976, is of Han nationality and hails from Guangfeng, Jiangxi Province. He is a member of the Communist Party of China, a professor, and a doctoral supervisor. He graduated with a bachelor's degree in Geological Exploration from Guilin University of Technology (formerly Guilin Institute of Technology) in 1998, obtained a master's degree in Insurance Accounting from Southwestern University of Finance and Economics in 2002, and completed his doctoral studies in Finance at Peking University in 2010. In July 2013, he was appointed Vice Dean of the School of Finance at Southwestern University of Finance and Economics. In March 2017, he became the Director of the Research Office at Southwestern University of Finance and Economics, and in August 2020, he assumed the position of Dean of the Graduate School and concurrently Director of the Research Office. In September 2021, he was appointed Dean of the Graduate School at Southwestern University of Finance and Economics. In July 2022, he became a member of the Standing Committee of the Party Committee and Vice President of Zhongnan University of Economics and Law. His main research interests lie in corporate finance and corporate innovation.