scholarly journals How Venture Capital Influences High-tech Enterprises’ IPO: External Factors versus Internal Growth

CONVERTER ◽  
2021 ◽  
pp. 84-99
Author(s):  
Hui Wu, Yu Wang
Keyword(s):  
Venture Capital ◽  
Manufacturing Sector ◽  
High Tech ◽  
Symmetric Information ◽  
Corporate Growth ◽  
Matching Degree ◽  
Investment Experience ◽  
Traditional Manufacturing ◽  
The Impact ◽  
The Empirical Analysis

There is huge potential for China to transform and upgrade its traditional manufacturing sector, and high-tech enterprises in manufacturing industries stand out. This study contributes to the literature on how venture capital affects technology-based Enterprises’ IPO by evaluating the characters between the two parties.  According to the symmetric information theory, certification theory and enterprise property rights theory, the first round of risk financing enterprises from 2010 to 2019 is taken as a research sample to empirically analyze the impact of venture capital and corporate growth on firm listing events. The results show that the investment experience of venture capital institutions, when matched appropriately to firms’ specific growth, will facilitate and accelerate the IPO process. Thus the matching degree between the two are significantly positively related to the company's IPO. Under the premise of low growth of the company, venture capital has a significant impact on the listing of the company. As the growth of the company increases, the impact of venture capital on the listing of the company is gradually reduced. Venture capital institutions with overseas backgrounds are more inclined to promote the IPO of invested international companies. Finally, we discuss the implications based on the results of the empirical analysis, and make suggestions for venture capital institutions and companies.

Determinants of the exit value in European venture capital-backed technology startups

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Benedetta Montanaro ◽  
Angelo Cavallo ◽  
Giancarlo Giudici ◽  
Antonio Ghezzi
Keyword(s):  
Human Capital ◽  
Venture Capital ◽  
Initial Public Offering ◽  
New Ventures ◽  
Content Type ◽  
Investor Heterogeneity ◽  
Public Offering ◽  
The Impact ◽  
The Empirical Analysis ◽  
Technology Startups

Purpose This study aims to analyze the impact of different exit alternatives, investor presence and founders’ human capital on the exit value of European venture capital (VC)-backed high technology startups. Design/methodology/approach The empirical analysis is based on a sample of 107 European firms that obtained an exit through Merger&Acquisition (M&A) or an initial public offering (IPO) between 2010 and 2017, backed by VC investors. Findings This study provides empirical evidence on how different exit alternatives, investor heterogeneity and founders’ human capital may affect the exit value of European VC-backed startups. Exiting through an IPO and retaining a larger equity stake are positively correlated with the exit value. The presence of business angels and non-governmental VC firms is associated with larger valuations. Founders’ previous education was positively correlated with the exit value. Originality/value Exit strategies in technology startups are essential to capitalize investors’ efforts and reinvest cash into new ventures, supporting the development of entrepreneurial ecosystems and countries’ competitiveness. The results of this study provide interesting hints for policymakers and contribute to an in-depth understanding of the drivers of exit valuation for startups.

The impact of intellectual capital on SMEs’ performance in China

2019 ◽  
Vol 20 (4) ◽  
pp. 488-509 ◽  
Author(s):  
Jian Xu ◽  
Jingsuo Li
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Manufacturing Sector ◽  
Operating Efficiency ◽  
High Tech ◽  
Relational Capital ◽  
Content Type ◽  
Structural Capital ◽  
Capital Efficiency ◽  
The Impact

Purpose The purpose of this paper is to explore and compare the extent of intellectual capital (IC) and its four components in high-tech and non-high-tech small and medium-sized enterprises (SMEs) operating in China’s manufacturing sector, and to examine the relationship between IC and the performance of high-tech and non-high-tech SMEs. Design/methodology/approach The study uses the data of 116 high-tech SMEs and 380 non-high-tech SMEs listed on the Shenzhen stock exchanges during 2012–2016. The modified value added intellectual coefficient (MVAIC) model is used incorporating four components, namely, capital employed, human capital, structural capital and relational capital. Finally, multiple regression analysis is utilized to test the proposed research hypotheses. Findings The findings of this paper reveal that there is significant difference in MVAIC between high-tech and non-high-tech SMEs. The results further indicate a positive relationship between IC and financial performance of high-tech and non-high-tech SMEs. Specifically, IC is positively associated with firms’ earnings, profitability and operating efficiency. Additionally, capital employed efficiency, human capital efficiency and structural capital efficiency are found to be the most influential value drivers for the performance of two types of SMEs while relational capital efficiency possesses less importance. Practical implications This paper will provide a valuable framework for executives, managers and policy makers in managing IC within the Chinese context. Originality/value To the best knowledge of the authors, this is the first empirical study that has been conducted on high-tech and non-high-tech SMEs in the manufacturing sector in China.

scholarly journals Public-Private Partnership in the Implementation of the Industrial Policy of Russia

2019 ◽  
Vol 71 ◽  
pp. 02005
Author(s):  
A.D. Kasatov
Keyword(s):  
Industrial Policy ◽  
Manufacturing Sector ◽  
Public Private Partnership ◽  
Public Private Partnerships ◽  
High Tech ◽  
Infrastructure Development ◽  
Public And Private ◽  
Private Partnership ◽  
Industrial Enterprises ◽  
The Impact

The article views the creation of public-private partnership as an important direction in the activation of the innovative type of the development of the economy of Russia. The need to combine the efforts of the public and private business in solving this problem is connected, firstly, with the economic sanctions of the West and not only financial sanctions but also with the refusal to supply high-tech equipment to Russia and, secondly, even more threatening prospects of the dynamics of the innovative development of the manufacturing sector. That is why the main attention is paid to the impact of public-private partnership on the development of integrated business in the context of the implementation of the strategic task of the innovative way of the Russian economy development. It is shown that public-private partnerships are one of the most common instruments for attracting private investments in infrastructure projects both in Russia and abroad. But the format of public-private partnerships for the implementation of Russia's industrial policy in the field of innovation should be used not only for the infrastructure development but also for the development of Russian industrial enterprises and the implementation of national projects.

scholarly journals ESSENCE AND ECONOMIC NATURE OF COUNTRY-REGIONAL BENCHMARKING MODELS IN ORDER TO DETERMINE THEIR COMPETITIVE FACTORS

2021 ◽  
Author(s):  
Antonina Lahun
Keyword(s):  
Venture Capital ◽  
Market Model ◽  
High Tech ◽  
Bank Capital ◽  
Regional Models ◽  
Corporate Sector ◽  
Capital Financing ◽  
Venture Financing ◽  
The Impact ◽  
Venture Capital Investments

The article is devoted to the current typification of country-regional models, which is based mainly on criteria for the scale and structure of venture financing, the degree of development of national financial markets, the level of concentration of bank capital and participation of banks in corporate sector management, the availability of venture capital financing. structures, share of bank capital in venture financing of investment projects, share of corporate sector in financing of venture funds, tupenya of mergers and acquisitions, the protection of minority investors and the concentration of ownership in the real economy. The criteria of classification of country-regional models of venture financing of innovative projects that cannot fully reflect its impact on the structural dynamics of national and global innovation development and should be supplemented by a number of additional criteria are considered. It is also the market model most widely used in the Anglo-Saxon countries. The presence of the best international business schools in the world is also a major competitive advantage of the market model of venture financing for innovation; deep cooperative links between universities, government laboratories and private companies. The role of the state in supporting the venture industry is analyzed, since in the market model it consists in direct investment of state funds into innovative companies (ie participation in capital) and high-tech programs and projects, as well as implementation of guarantee programs for the development of venture activity and creation of proper regulatory, organizational-economic, financial-investment and credit-tax conditions of its support. The strategic goal is most realized today in countries with a market model of venture financing, where it has long proven its high efficiency as a significant source of innovative development. And, the deepening of the processes of technoglobalism gives the venture business a powerful impetus for development, transforming it in accordance with the impact of global economic trends and stimulating the scale-up and diversification of the regional and sectoral-sectoral structure of venture capital investments.

Corporate Structure and Corporate Change in a Local Economy: The Case of Bristol

1984 ◽  
Vol 16 (7) ◽  
pp. 879-900 ◽  
Author(s):  
K Bassett
Keyword(s):  
Multinational Corporations ◽  
Manufacturing Sector ◽  
Local Economy ◽  
Corporate Structure ◽  
Corporate Growth ◽  
Time Period ◽  
Corporate Change ◽  
Local Impacts ◽  
And Control ◽  
The Impact

In this paper, I focus upon the role of large multinational corporations in the restructuring of local economies, using Bristol as a study area. In the first part of the paper, I concentrate upon the impact of the current recession on the city's manufacturing sector. The major local employers are identified and the pattern of corporate ownership and control discussed. An attempt is then made to trace out the impacts of different forms of corporate change during the period 1978–1982. In the second part of the paper, I concentrate on one large multinational corporation which has long associations with the Bristol area, and trace some of the local impacts of different phases of corporate growth over a longer time period. This paper is only a preliminary to a deeper and more wide-ranging analysis of the local economy, and, in the conclusions, I identify various lines of further inquiry.

The interrelationship between intellectual capital and firm performance: evidence from China's manufacturing sector

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jian Xu ◽  
Jingsuo Li
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Manufacturing Sector ◽  
Value Added ◽  
Physical Capital ◽  
Listed Companies ◽  
High Tech ◽  
Manufacturing Companies ◽  
Content Type ◽  
The Impact

PurposeThe purpose of this paper is to examine the impact of intellectual capital (IC) and its components (human, structural and relational capitals) on the performance of manufacturing listed companies in China. This paper also investigates the impacts of company ownership, industry attributes and region on the IC-performance relationship.Design/methodology/approachThe study uses the data of 953 manufacturing companies listed on the Shanghai and Shenzhen Stock Exchanges over the period 2012–2016. The modified value-added intellectual coefficient (MVAIC) model is applied to measure IC efficiency. Finally, multiple regression analysis is employed to test the research hypotheses.FindingsThis study reveals that IC can enhance firm performance in China's manufacturing sector. Overall, earnings are affected by physical capital, human capital (HC) and structural capital (SC), and profitability and productivity are influenced by physical capital, HC, SC and relational capital. Physical capital is the most influential contributor to firm performance. In addition, state-owned enterprises have a greater impact of IC on firm performance than private-owned enterprises; high-tech manufacturing companies have higher IC performance than non-high-tech manufacturing companies; manufacturing companies in China's eastern region have higher IC performance than the counterparts in central and western regions.Practical implicationsThe findings may help managers, stakeholders and policymakers in developing countries to effectively and efficiently manage their IC resources.Originality/valueThis is the first study to evaluate IC and its relationship with firm performance among Chinese manufacturing listed companies using the MVAIC model.

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