The Influence Of Cultural Distance On The Performance Of Cross-border Joint Investment

With the development of economic globalization,venture capital gradually shows the trend of cross-border flows.At the same time,the joint investment strategy has become the most popular venture investment strategy among venture capital institutions.As a result,many scholars have invested in cross-border joint investment research.Considering that cultural distance affects the investment philosophy and style of investment institutions and is likely to be related to cross-border joint investment,this paper starts with the cultural distance between the countries where the venture capital institutions in the joint investment group are located,and determines the research direction as the impact of cultural distance between the countries where the venture capital institutions in the joint investment group are located on the performance of cross-border joint investment.Based on the relevant literature on the research direction of the relationship between cultural distance and cross-border investment,the influencing factors of venture capital performance and the relationship between joint investment strategy and venture capital performance,and combining the theories of cross-cultural management,psychology and other aspects,this paper analyzes the research direction at the theoretical level,and puts forward the relevant research hypothesis that cultural distance can promote the performance of cross-border joint investment.Then,according to the research content,this paper established five groups of multiple linear regression models,collected the relevant information of 122 cross-border joint investment events as sample data through the CV Source database,Hofstede official website and other places,and used Eviews10 to make descriptive statistics,correlation analysis,multicollinearity test,autocorrelation test and heteroscedasticity test,in order to ensure the rationality and scientificalness of the empirical model.Finally,this paper carries out the least squares regression estimation(OLS)on five groups of multivariate linear regression models.Through the regression results,this paper draws the conclusions that "cultural distance is helpful to improve the performance of cross-border joint investment" and "the difference in power distance is the most significant to promote the performance of cross-border joint investment".On this basis,this paper suggests that the venture capital institutions with resource advantages should join with overseas venture capital institutions as much as possible.It also suggests that the venture capital institutions without resource advantages should try their best to participate in joint investment groups with more overseas partners.It also makes a good prospect for the research field,cultural distance theory and the development of venture capital industry.