The Role of Bank‐Affiliated Venture Capital for Parent Banks in Japan: New Evidence | Zendy

Sun Yue | Zendy; Uchida Konari | Zendy

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The Role of Bank‐Affiliated Venture Capital for Parent Banks in Japan: New Evidence

Author(s) -

Sun Yue,

Uchida Konari

Publication year - 2016

Publication title -

asia‐pacific journal of financial studies

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.375

H-Index - 15

eISSN - 2041-6156

pISSN - 2041-9945

DOI - 10.1111/ajfs.12155

Subject(s) - initial public offering , business , explanatory power , venture capital , loan , financial system , exit strategy , finance , monetary economics , economics , marketing , philosophy , epistemology

After controlling for the effect of parent banks’ ( PB s) direct ownership, we find that investment by bank‐affiliated venture capitals ( BVC s) is positively associated with the probability that investee firms have loan balances with PB s in the year they issue an IPO . However, BVC s typically sell off their holdings of investee firms within 2 years after the IPO . Furthermore, the level of BVC ownership does not have explanatory power regarding whether investee firms have loans from PB s. On the contrary, PB s’ direct shareholdings have a positive association with the probability that investee firms have PB loans for many years after IPO s.

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