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Venture capital in China: a culture shock for Western investors

Venture capital in China: a culture shock for Western investors Purpose – This study seeks to examine the peculiarities of the venture capital market in China and seeks to compare it with Western markets. Design/methodology/approach – The paper provides insights based on both the practitioner and academic literature in the field. Findings – It is noted that different cultural norms, corporate governance structures, a lack of appropriate exit strategies, and governmental intervention are important factors that set the markets apart and should be taken into consideration when making venture capital investments in China. Practical implications – The paper should be of interest to practitioners considering investing in China and to academics doing research in this area. Originality/value – The paper is to the best of the authors' knowledge the first to provide a detailed and comprehensive review of the Chinese venture capital market. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Management Decision Emerald Publishing

Venture capital in China: a culture shock for Western investors

Kuntara Pukthuanthong; Thomas Walker
Management Decision , Volume 45 (4): 24 – May 8, 2007
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Publisher
Emerald Publishing
Copyright
Copyright © 2007 Emerald Group Publishing Limited. All rights reserved.
ISSN
0025-1747
DOI
10.1108/00251740710745999
Publisher site
See Article on Publisher Site

Abstract

Purpose – This study seeks to examine the peculiarities of the venture capital market in China and seeks to compare it with Western markets. Design/methodology/approach – The paper provides insights based on both the practitioner and academic literature in the field. Findings – It is noted that different cultural norms, corporate governance structures, a lack of appropriate exit strategies, and governmental intervention are important factors that set the markets apart and should be taken into consideration when making venture capital investments in China. Practical implications – The paper should be of interest to practitioners considering investing in China and to academics doing research in this area. Originality/value – The paper is to the best of the authors' knowledge the first to provide a detailed and comprehensive review of the Chinese venture capital market.

Journal

Management Decision – Emerald Publishing

Published: May 8, 2007

Keywords: Venture capital; Economic policy; Entrepreneurialism; China

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