Approaches to Assess Venture Capitals’ Risk, Feasibility, and Its Impacts on the Performance of Firms in China
DOI:
https://doi.org/10.54691/bcpbm.v45i.4878Keywords:
Venture Capitals, Risk, firms, the Propensity Score Matching (PSM) method, the Cox Proportional Hazard (CPH) model, the Fuzzy Synthetic Evaluation (FSE) model.Abstract
Venture capitals (VCs) are the type of investment that are featured for its high risk and high returns. Nowadays VCs have been more and more commonly employed in firms’ strategies, in that venture capitalists gradually realize the benefits of doing so and are underpinned by the advanced technology as well as economic growth. This article examines the VCs’ risk, feasibility, and impacts on firms based upon three models. The article reviews 5 papers and discusses the research methods used for the assessment of VCs. The review of the three models, the Propensity Score Matching method (PSM), the Cox Proportional Hazard model (CPH), and the Fuzzy Synthetic Evaluation model (FSE), summarizes the various impacts of VCs on firms in China. In this paper, it is noticed that not only the risk and returns of VCs have to be paid attention to, but also the reputation of firms and the time in which firms invest VCs should also be considered.
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