Institutions and venture capital market creation: The case of an emerging market

2021 ◽  
Vol 127 ◽  
pp. 1-12
Author(s):  
Carla V. Bustamante ◽  
Santiago Mingo ◽  
Sharon F. Matusik
Keyword(s):  
Venture Capital ◽  
Capital Market ◽  
Emerging Market ◽  
Market Creation

scholarly journals A Social Network Analysis on Venture Capital Alliance’s Exit from an Emerging Market

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-10
Author(s):  
Jing Wu ◽  
Chuan Luo ◽  
Ling Liu
Keyword(s):  
Venture Capital ◽  
Initial Public Offering ◽  
Capital Market ◽  
Value Chain ◽  
Emerging Market ◽  
Enterprise Development ◽  
Short Term ◽  
Enterprise Value ◽  
Public Offering ◽  
Positive Effect

This study investigated the impacts of network structure on a venture capital (VC) alliance’s successful exit from an emerging market by empirically analyzing joint VC data in China. We find that, compared to a mature capital market, the mechanism not only has a certain commonality but also shows the emerging market’s particularities. From the commonality perspective, the mechanism has a positive effect on successful exit by obtaining heterogeneity information. These particularities are manifested in the following three aspects. First, the mechanism is not conducive to deepening the enterprise value chain to establish credibility by obtaining short-term cash during an initial public offering with the enhancement of the VC alliance’s intervention ability for enterprise development. In addition, a VC alliance’s independent judgment is bound by the VC market. Furthermore, the problem of over-trust in investees reduces the likelihood of a VC alliance’s successful exit. Therefore, we should pay more attention to the particularity of emerging markets such as China to improve the relevant management mechanism.

scholarly journals International Equity Portfolios and Currency Hedging: The Viewpoint of German and Hungarian Investors

2002 ◽  
Vol 32 (1) ◽  
pp. 171-197 ◽  
Author(s):  
Gyöngyi Bugár ◽  
Raimond Maurer
Keyword(s):  
Capital Market ◽  
Stock Exchange ◽  
Emerging Market ◽  
Currency Hedging ◽  
Portfolio Strategies ◽  
Different Types ◽  
International Equity ◽  
Good Potential ◽  
Points Of View ◽  
Equity Portfolios

AbstractIn this paper we study the benefits derived from international diversification of equity portfolios from the German and the Hungarian points of view. In contrast to the German capital market, which is one of the largest in the world, the Hungarian Stock Exchange is an emerging market. The Hungarian stock market is highly volatile, high returns are often accompanied by extremely large risk. Therefore, there is a good potential for Hungarian investors to realise substantial benefits in terms of risk reduction by creating multi-currency portfolios. The paper gives evidence on the above mentioned benefits for both countries by examining the performance of several ex ante portfolio strategies. In order to control the currency risk, different types of hedging approaches are implemented.

scholarly journals Affect of Uncertainty Avoidance on Venture Capital Investing Activities in Asian Countries

2016 ◽  
Vol 12 (12) ◽  
pp. 152 ◽  
Author(s):  
Thi X. A. Tran ◽  
Thi L. A. Nguyen ◽  
Thi H. L. Nguyen
Keyword(s):  
Venture Capital ◽  
Capital Market ◽  
Negative Impact ◽  
Uncertainty Avoidance ◽  
Asian Countries ◽  
Country Level ◽  
Significant Negative Impact

This research aims to use country–level uncertainty avoidance degree to explain the variation of venture capital investing activities across different Asian countries. The analysis of venture capital activity done for 11 Asian countries in period from 2003 to 2012 shows that country-level uncertainty avoidance degree have a significant negative impact on venture capital activity. Specifically, countries with higher degree of uncertainty avoidance degree, has a less developed venture capital market (a smaller-sized market with smaller venture capital deals).

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