| Since the mid-1980s, China has experienced20years of development after the introductionof equity investment. The equity investment institutions can absorb idle funds for social develop-ment of country and can greatly promote the technology innovation and the rigional economicdevelopment, which is significant to China’s economy. However, due to the monitoring costsarising from factors such as distance limitations make equity investments in preference for aspecific region and industry, making the role of equity investment received a lot of restrictions.However, we find that the use of the investment syndicate formed a network which has animportant role in overcoming distance costs and other factors. So this paper explore the impactof the equity investment syndication network characteristics preferences based on the perspectiveof social network analysis. and further analysis of the relationship between the network thestrength of the relationship between investment preferences mechanism.Finally, based on2007-2012data of China’s equity syndicate investment, using socialnetwork analysis methods to quantify syndication network characteristics, and analysis ofdifferent network characteristics preference for equity investment diversification effects. furtheranalysis of the strength of the relationship between syndication network for equity investmentspreferences influence mechanism to verify syndication network, the relationship between thestrength of the relationship between diversification and investment preferences. The resultsshowed that the syndicate network limitations can be overcome previous studies suggest thatequity investment institutions at the regional and industry investment preferences, and a strongnetwork of relationships a high degree of similarity of the equity investment institutions is amajor factor in the formation of regional investment preferences influence, while low similarityWeak networks degrees is the main factor affecting the investment industry preferences. |
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