Donghua U., Glorious Sun School of Business and Management, China
This study investigates whether VCs with higher Long-term orientation (LTO) will lead better venture investment performance. We propose three mechanisms with opposing effects in which LTO affects investment performance and four VC investment characteristics with moderating effects. Using Chinese VC investment data and the content analysis measurement of LTO, our empirical findings suggest nonsignificant direct effect of LTO on VC investment performance. But VCs with more investment experience and repeated investment strategy may benefit from LTO. In contrast, VCs preferring later stage or higher industrial concentration need to be cautious with LTO as it may result in worse performance.
