Abstract Due to the different political purposes and individual differences of officials, the change of local officials often leads to the instability of the local policy environment and affects the decision-making of venture capital. Based on the resume information of local officials and venture capital events from 2002 to 2016, this paper empirically tests the effect of local official changes on the new investment activities of venture capital institutions. There are following empirical results: (1) When City officials changes, the new investment of venture capital institutions in the city decreases significantly that year. (2) The legal environment magnifies the adverse impact of local official’s turnover on the investment of venture capital. (3) When city officials change due to unconventional reasons or when new officials come from outside the city, the decline in new venture capital investment is even more obvious. The study provides a reference for the field of venture capital from the perspective of political economy.
2021, Vol. 38 
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