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Buybacks as an efficient strategy for venture capital in emerging markets

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  • Wang, Lanfang
  • Wang, Susheng

Abstract

Special circumstances in emerging markets call for special strategies for venture capitalists. In emerging markets, venture capitalists are often observed to exit through buybacks. This paper develops a theory and provides empirical evidence on such joint ventures. We show that buybacks can be an efficient solution in emerging markets. We also find supporting evidence from the China market.

Suggested Citation

  • Wang, Lanfang & Wang, Susheng, 2017. "Buybacks as an efficient strategy for venture capital in emerging markets," Pacific-Basin Finance Journal, Elsevier, vol. 43(C), pages 107-123.
    • Handle: RePEc:eee:pacfin:v:43:y:2017:i:c:p:107-123
    DOI: 10.1016/j.pacfin.2017.03.002
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    Cited by:

    1. Azzi, Sarah & Suchard, Jo-Ann, 2019. "Crouching tigers, hidden dragons: Private equity fund selection in China," Pacific-Basin Finance Journal, Elsevier, vol. 53(C), pages 236-253.

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    More about this item

    Keywords

    Buybacks; Emerging markets; Venture capitalists;
    All these keywords.

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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