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| Will Venture Capital Help Improve the Social Capital of the Entrepreneurial Firms' Board? |
| LIU Kuifu,MAO Ning |
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Abstract Helping their backed entrepreneurial firms improve board governance effectiveness is one of the primary “value-added” services that venture capital firms can offer. But, the extant studies mainly focus on the monitoring function of the board, studying the effect of venture capital backing on entrepreneurial firms' board independence. According to resource dependence theory and organizational life cycle theory, board resource provision function is more vital for entrepreneurial firms, which largely hinges on their own social capital. This study empirically attempts to investigate whether venture capital backing improves the board social capital that they invest, and how venture capital characteristics play a role in this relationship. The empirical results show that: firstly, venture capital is beneficial to the advancement of board social capital; secondly, non-foreign, government-sponsored, non-syndicated, and early investing venture capitals can help improve board social capital more than their counterparts do. Summing up, our study enriches the research in corporate governance and entrepreneurial study.
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Received: 06 April 2016
Published: 15 October 2016
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Corresponding Authors:
LIU Kuifu
E-mail: liukuifu@163.com
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2016, Vol. 
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