Topic: Can Infrastructural Development Help Promote Financial Efficiency?
Speaker: LONG Xiaoning
Abstract: This paper studies the impact of HSR (high-speed rail) connection on venture capital investment and explores the specific mechanisms for such effects. We provide theoretical predictions and empirical evidence that high-speed rail development has significantly increased venture capital investment in China, and that both selection and monitoring channels have been indispensable. To the extent that equity financing has not yet fulfilled its function, HSR connection has thus helped improve financial efficiency in China. However, the heterogeneity in HSR's impact on VC investment quality points to the importance of monitoring abilities of VC firms. Thus, our study not only helps shed light on how infrastructural development affects the efficiency of a country's financial system, it also highlights the importance of market participant vitality.
Date: Wednesday, May 29, 2019
Location: Room 702, Main Building, City Campus, CUFE