Impact of Weibo sentiment and R&D innovation as signalling mechanisms on venture corporate financing

Weibo sentiment and R&D innovation are important signals that influence the financing processes of venture corporations. We collect relevant data between 1 January 2011, and 31 December 2020, to analyse the effect of the signalling mechanism of Weibo sentiment and R&D innovation on venture corporate financing. The conclusions are as follows. The positive effects of Weibo sentiment on venture valuation and investment success are weaker than the effects of R&D innovation, and the positive effects of Weibo sentiment and R&D innovation on venture valuations are stronger for young than older venture firms. The positive effects of Weibo sentiment and R&D innovation on venture valuations are stronger for less experienced ventures than for more experienced ventures. These conclusions show that the two signals of Weibo sentiment and R&D innovation have different strengths in terms of venture valuation and investment success, with the effect of the Weibo sentiment signal being relatively less strong. Moreover, venture corporate age and venture corporate experience play important negative moderating roles in the relationship between the two signals and venture valuation.