【Abstract】

We examine the impact of venture capital (VC) on corporate social responsibility  (CSR) performance in China. Exploiting the timing of VC exit, we find that the CSR performance of VC-backed companies improves after the exit of VC. Using the age of VC funds as an instrument for VC exit, we find that the effect is likely to be causal. Further analyses suggest that the effect is largely driven by inexperienced, badly  performing, and less reputable VCs.

【Keywords】

Venture Capital, Corporate Social Responsibility, Monitoring, Board of Directors

【Authors】

Cheng Cheng, College of Finance and Statistics, Hunan University

Chu Yongqiang, Department of Finance and the Childress Klein Center for Real Estate, Belk College of Business, University of North Carolina at Charlotte

Deng Zijie, Department of Land Economy, University of Cambridge

Huang Bo, IMI Research Fellow, School of Finance, Renmin University of China.