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The impact of government data accessibility on cross-regional venture capital investments

Author

Listed:
  • Lin, Qi
  • Zhao, Xiaoyang
  • Hong, Weihang

Abstract

This study examines the association between government data accessibility and venture capital (VC)'s cross-regional investments. Exploiting the staggered establishment of government data open platforms (GDOPs) across different cities in China as a positive shock to government data accessibility, we find that this policy significantly increases cross-regional VC investments in treatment cities relative to others. Furthermore, the positive impact is achieved through the reduction of information asymmetry, as the establishment of GDOPs attracts VC investments from greater geographical distances. Additionally, we find a more pronounced positive effect of GDOPs on promoting cross-regional VC investments in regions with higher terrain ruggedness and lower fiscal transparency. Overall, this study demonstrates that the government's informatization and transparency initiatives can positively influence financial markets by enhancing the cross-regional flow of financial capital.

Suggested Citation

  • Lin, Qi & Zhao, Xiaoyang & Hong, Weihang, 2025. "The impact of government data accessibility on cross-regional venture capital investments," Finance Research Letters, Elsevier, vol. 71(C).
    • Handle: RePEc:eee:finlet:v:71:y:2025:i:c:s1544612324013795
    DOI: 10.1016/j.frl.2024.106350
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    More about this item

    Keywords

    Government data accessibility; Venture capital; Information asymmetry;
    All these keywords.

    JEL classification:

    • L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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