Time-space Compression Effect Of High-Speed Railway On Venture Capital Behavior

In recent years,along with the continuous expansion of China's high-speed railway,the gradual improvement of the high-speed railway network has promoted the urban economy and the establishment of more frequent links among economic entities in cities,which has affected the layout of the capital allocation,especially the strong "local preferences" venture capital investment behavior.The opening of the high-speed railway shortens the space-time distance between cities,which not only improves the efficiency of information flow between venture capital institutions and invested companies,but also reduces the transaction costs of the risk investment activities and improving the screening and supervision mechanism of venture capital institutions for start-ups.It enables venture capital to expand along the high-speed railway artery to a wider geographical area and also arouses the academic interest in the impact of time and space compression on venture capital behavior.At present,the academic community has not yet reached a unified conclusion,according to the actual situation of various countries,the time-space compression effect of exogenous variables selection are also different.Therefore,under the background of the rapid development of China's high-speed railway,it is of theoretical and practical significance to explore the impact of time and space compression on venture capital investment.Based on the data of the venture capital event and the opening of high-speed railway stations in all prefecture-level cities in China from 2007 to 2016,this paper explores the impact of high-speed railway opening on venture capital behavior in China from the perspective of venture capital.Through Difference in difference model empirical analysis,it is found that after the opening of highspeed rail traffic,venture capital in high-speed city new investment increased significantly,and venture capital event successful exit also increased significantly compared with cities which opened the high-speed railway.Moreover,the highspeed railway has changed the spatial and temporal constraints of geographical distance,effectively alleviated the problem of information asymmetry,and significantly increased the investment of venture capital A with more sensitive information.At the same time,the time compression effect brought by high-speed railway has expanded the radius of "investment" in venture capital and the venture capital institutions to choice of venture enterprises,making the huge potential of high and new technology industry investment increasing significantly.From the micro perspective of venture capital,this paper provides evidence to support the economic growth and industrial transformation of the cities along the route,and also expands related theories of venture capital and high-speed railway economics.At the same time,the results of this paper are of great significance for the investment layout of venture capital institutions and the selection of the location of entrepreneurial enterprises.