Venture Capital and Private Firms’ Voluntary Disclosure
Prof. Yiran Kang
Assistant Professor of Accounting,
City University of Hong Kong
Date: 30 January 2026 (Friday)
Time: 10:30-12:00
Venue: E22-2011
Host: Prof. Duncan Jiancheng LIU, Assistant Professor in Accounting
Abstract
We investigate whether and how Venture Capital (VC) investors shape the voluntary disclosure practices of private firms they fund. Exploiting the 2014 Volcker Rule, which restricted banks’ participation in venture capital investments and led to a contraction in VC funding supply, we find that private firms backed by VC capital reduce their voluntary disclosure captured through press release activity after the Rule’s implementation, while non-VC-backed firms increase theirs. The decline among VC-backed firms is concentrated among those funded by geographically proximate and smaller VCs, consistent with liquidity constraints weakening VC investors’ involvement to provide strategic guidance on public communication. In addition, we find a significant drop in media coverage for VC-backed firms, corroborating the notion of reduced investor-driven promotion and visibility support. Finally, firms that maintain or increase their press releases are more likely to secure VC financing amid the liquidity contraction. Overall, our findings highlight VC investors as a key contributor to information production in private markets and reveal an indirect channel through which financial regulation can shape firms’ external communication.
Speaker
Dr. Yiran Kang is an Assistant Professor of Accounting at City University of Hong Kong. She obtained her Ph.D. from Columbia Business School. Her research examines how accounting information and disclosure mechanisms facilitate capital formation and allocation, with a particular focus on the less regulated markets such as private capital markets. Her research has been published in the Journal of Accounting Research. Prior to entering academia, Dr. Kang worked at Morgan Stanley and Moody’s in roles involving financial analysis and budgeting, and served as an auditor at PricewaterhouseCoopers.
All are welcome!
