TY - JOUR T1 - Impacts of Institutions on Venture Capital Investment Activities: <em>Evidence from China, India, Japan, and Hong Kong</em> JF - The Journal of Investing SP - 39 LP - 52 DO - 10.3905/joi.2013.22.3.039 VL - 22 IS - 3 AU - Anson Wong Lai Kuen Y1 - 2013/08/31 UR - https://pm-research.com/content/22/3/39.abstract N2 - The study is to investigate the importance of institutional forces to shape the venture capitalists’ (VC) investment activities of VC firms in China, India, Japan and Hong Kong and has reached a few of interesting findings. Firstly, in China and India, the venture capital funding is focused on early-stage ventures and the government support is an important factor that results in high number of VC deals at early stage in both China and India even though their legal systems to protect investors are not strong. Secondly, in Japan and Hong Kong, most VC funding is provided at expansionary and later stages of development of ventures because of their well-established stock market. Thirdly, availability of government financial incentives for establishment of high-tech ventures is not the most critical driver to increase the possibility of young ventures getting VC funding. Finally, the article discovers a substitution effect of social networks and legal systems in Asian venture capital markets. Entrepreneurs with good social networks with venture capitalist are highly likely to get venture capital financing to support their businesses, as the relationship is one of the most important selection criteria to investment decisions.TOPICS: Real assets/alternative investments/private equity, emerging ER -