Professor Huasheng Gao’s Paper is Accepted and Published in International Level-A Journal, Focusing on Second-tier Stock Exchanges and Growth of Entrepreneurship | Academics

Release time：2025-09-09    

The paper entitled “Second-tier Stock Exchanges and Growth of Entrepreneurship” coauthored by Huasheng Gao, Deputy Dean of Fudan International School of Finance and Professor in Finance, with his partners Boxuan Xu and Yuxi Wang, was accepted and published in the international level-A journal, Management Science, and would be printed out soon.

Professor Introduction

Huasheng Gao

Deputy Dean of Fudan International School of Finance

Professor in Finance

Main contents of the paper:

We examine the role of second-tier stock exchanges in an entrepreneurial context from a global perspective. We construct a country-industry-year panel of global VC-invested startups, and find a significant increase in entrepreneurial activity following the launch of such markets. A causal interpretation is supported by additional tests for staggered difference-in-differences regressions and interacted regressions based on industry-specific dependence on second-tier stock exchanges. We propose a VC exit mechanism that receives empirical support: the launch of second-tier stock exchanges positively predicts (i) VC investment in startups, (ii) VCs’ valuation of startups, (iii) startups’ patenting records, (iv) startups’ IPO likelihood, and (v) startups’ IPO valuation. We find that more startups are created in countries with more VC investment after the launch of such markets. We also find that the effect of second-tier stock exchanges on entrepreneurial ventures increases with financial resources, human capital, and intellectual property protection.

FISF

Ever since establishment, FISF has witnessed 39 professors publishing a total of 181 papers on world-famous academic journals, among which 128 academic papers were published on international level-A journals (including A+, A and A-). The teaching team of the school has always upheld the school motto of “Unified FISF, Excellence, Responsibility, Innovation,” devoting themselves wholeheartedly to the academic research work. They manage to maintain a high level of academic achievements in both quantity and quality, which fully reflects the excellent strength of the teaching team of FISF in the field of academic research. In the future, FISF will keep on pursuing international cutting-edge scientific research achievements and continue to make greater contributions to the promotion of first-class financial and economic disciplines.