Authors: Douglas Dyer; Iftekhar Hasan; Haizhi Wang; Desheng Yin
Addresses: Department of Accounting, Finance and Economics, Texas A&M University – Central Texas, 1001 Leadership Place, Killeen, Texas 76549, USA ' Bank of Finland, Finland; Fordham University, 45 Columbus Avenue, 5th Floor, NY 10023, USA ' Stuart School of Business, Illinois Institute of Technology, 10 35th St., Chicago, IL 60616, USA ' School of Economics, East China Normal University, 3663 N. Zhongshan Road, Shanghai 200062, China
Abstract: Entrepreneurship involves mobilising resources in the founding of new businesses to pursue entrepreneurial opportunities. Resource acquisition, especially of financial resource, is crucial for bringing innovative ideas into reality. Though the role of venture capital, as a specialised and important intermediary, in financing innovative entrepreneurial companies is widely recognised, relatively little evidence shows the real effects of venture capital investment. This paper empirically examines the real effects of venture capital investment on regional innovation and new firm creation in the USA. Overall, the results confirm a significant and positive role of venture capital investment in promoting innovation and fostering entrepreneurship.
Keywords: venture capital investment; new business creation; entrepreneurship; regional innovation; investment effects; USA; United States.
International Journal of Banking, Accounting and Finance, 2016 Vol.7 No.2, pp.111 - 124
Received: 18 Apr 2016
Accepted: 30 Aug 2016
Published online: 18 Nov 2016 *