Corporate venture capital and the returns to acquiring portfolio companies

被引:75
作者
Benson, David [2 ]
Ziedonis, Rosemarie H. [1 ]
机构
[1] Univ Oregon, Lundquist Coll Business, Eugene, OR 97403 USA
[2] Brigham Young Univ, Marriott Sch Management, Provo, UT 84602 USA
关键词
Corporate venture capital; Acquisitions; Entrepreneurial finance; Governance; Overconfidence; RESEARCH-AND-DEVELOPMENT; FREE CASH FLOW; ENTREPRENEURIAL VENTURES; CEO OVERCONFIDENCE; BIDDER RETURNS; STOCK RETURNS; TAKEOVERS; ACQUISITIONS; INVESTMENT; FIRMS;
D O I
10.1016/j.jfineco.2010.07.003
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
A prominent motive for corporate venture capital (CVC) is the identification of entrepreneurial-firm acquisition opportunities. Consistent with this view, we find that one of every five startups purchased by 61 top corporate investors from 1987 through 2003 is a venture portfolio company of its acquirer. Surprisingly, our analysis reveals that takeovers of portfolio companies destroy significant value for shareholders of acquisitive CVC investors, even though these same investors are "good acquirers" of other entrepreneurial firms. We explore numerous explanations for these puzzling findings, which seem rooted in managerial overconfidence or agency problems at the program level. (C) 2010 Elsevier B.V. All rights reserved.
引用
收藏
页码:478 / 499
页数:22
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