Venture Capital in Transition Economies: The Case of Hungary

1997 ◽  
Vol 21 (4) ◽  
pp. 93-110 ◽  
Author(s):  
Judit Karsai ◽  
Mike Wright ◽  
Igor Filatotchev
Keyword(s):  
Venture Capital ◽  
Emerging Economies ◽  
Central And Eastern Europe ◽  
Secondary Data ◽  
Venture Capitalists ◽  
Face To Face ◽  
The Us ◽  
Price Earnings Ratio ◽  
Western Experience ◽  
Similarity And Difference

This paper examines the Hungarian venture capital industry, one of the most well-developed in the emerging economies of Central and Eastern Europe. Using a combination of secondary data, mail questionnaires, and face-to-face Interviews, the paper identifies areas of both similarity and difference with experience in developed capitalist economies. The need for venture capitalists to obtain control is found to be much stronger in Hungary than in the US. The relative importance of DCF and price/earnings ratio methods of valuation are reversed when Hungary and western experience are compared. There was evidence that Hungarian domestic venture capitalists engage in less detailed monitoring than either venture capitalists elsewhere or foreign-based venture capitalists operating in Hungary.

scholarly journals How individual cognitions overshadow regulations and group norms: a study of government venture capital decisions

2019 ◽  
Author(s):  
Jeaneth Johansson ◽  
Malin Malmström ◽  
Joakim Wincent ◽  
Vinit Parida
Keyword(s):  
Decision Making ◽  
Venture Capital ◽  
Secondary Data ◽  
Decision Making Process ◽  
Venture Capitalists ◽  
Group Norms ◽  
Group Level ◽  
Funding Decision ◽  
Socially Constructed ◽  
Individual Decisions

Abstract This paper explores how government venture capitalists approve or reject financing applications. Based on longitudinal observations, complemented by interviews, documentation, and secondary data, the findings show the limited influence of the regulative and normative logics (e.g., formal guidelines and accepted behavior) on government venture capitalists’ decisions. Instead, individual decisions are observed to be largely overshadowed by cognitions and heuristics, which dominate formal regulations and socially constructed group-level norms. Although official decision communications state that regulations have been followed, the evidence suggests that the cognitive logic dominates the funding decision-making process through a set of overshadowing forces that restrict the influence of the normative and regulative logics on funding decisions. This research has implications for venture financing and highlights the importance of cognitions in shaping venture capital decisions.

scholarly journals Venture Capitalists’ Investment Criteria in Poland: Entrepreneurial Opportunities, Entrepreneurs, and Founding Teams

2020 ◽  
Vol 10 (4) ◽  
pp. 77
Author(s):  
Rafał Morawczyński
Keyword(s):  
Central And Eastern Europe ◽  
State Of The Art ◽  
Special Focus ◽  
Venture Capitalists ◽  
Face To Face ◽  
Entrepreneurial Opportunities ◽  
Single Person ◽  
Product Service ◽  
Conjoint Experiment ◽  
Art As Research

The aim of this article is to explore the decision-making policies by Polish Venture Capital (VC) firms, with special focus on the perception of entrepreneurs. This paper presents the results of a conjoint analysis and assessment of the importance of select characteristics among entrepreneurs and the qualities of a team of founders comprising managers of VC firms. The data were collected via face-to-face interviews with 26 Venture Capitalists. In the conjoint experiment, six attributes were presented, among which three represented characteristics of the entrepreneur (his/her passion and experience) and the management team (experience and completeness) alongside three characteristics of the opportunity (readiness of the product/service, growth rate of the market, and innovativeness of the whole project). VC managers ranked the importance of eight characteristics of the entrepreneurs related to their decisions and assessed the functional composition of the team of founders. The results of the experiment show that venture capitalists (VCs) most strongly appreciate the readiness of the product and entrepreneur’s passion. However, their preferences varied across the sample. The results of the ranking also show that the VC managers highly value the honesty of the entrepreneur. VCs typically prefer a team of founders, rather than a single-person project, preferably consisting of persons at least familiar with the technology and the market. This study contributes significantly to the state-of-the-art, as research on VC investment policy (investment criteria) is relatively rare in Central and Eastern Europe, where the VC industry is starting to flourish.

scholarly journals Herd Behavior in Venture Capital Market: Evidence from China

Mathematics ◽  
2021 ◽  
Vol 9 (13) ◽  
pp. 1509
Author(s):  
Ruijun Zhang ◽  
Xiaotong Yang ◽  
Nian Li ◽  
Muhammad Asif Khan
Keyword(s):  
Venture Capital ◽  
Emerging Economies ◽  
Capital Market ◽  
Policy Implications ◽  
External Information ◽  
Herd Behavior ◽  
Venture Capitalists ◽  
Information Uncertainty ◽  
Essential Information ◽  
Steady Growth

This paper aims to empirically analyze the herd behavior in the VC market in the context of China, including the existence, causes and consequences of herding among venture capitalists. For our empirical analysis, we first construct a herding measure and confirm the existence of herd behavior in the Chinese VC market. Then, we perform OLS/logit regression to examine the causes and consequences of herding among venture capitalists. Our results suggest that herd behavior in the venture capital market are driven by positive signals of essential information and a higher degree of information uncertainty. However, we find no evidence of the influence of feedback trading signals on herding among venture capitalists. Further analysis suggests that a better external information environment would help weaken the herding among venture capitalists, while their reputation concerns might amplify the herding effect. Finally, we examine the economic consequence of the herding and find that the herd behavior of venture capitalists would have an adverse effect on their exit performance. In addition to the enrichment and development of herding theory, our study also provides an essential theoretical frame and policy implications for the steady growth of the venture capital market in emerging economies.

scholarly journals Did Venture Capital Promote Innovation in India?

2019 ◽  
Vol 9 (1) ◽  
pp. 2409-2413
Keyword(s):  
Venture Capital ◽  
Relevant Literature ◽  
Secondary Data ◽  
Innovative Technology ◽  
Venture Capitalists ◽  
Capital Investments ◽  
Recent Past ◽  
Indian Context ◽  
Venture Capital Firms ◽  
Venture Capital Investments

The study exhorts to ascertain the general perception that Venture Capitalists fund innovative technology projects in the Indian context using primary and secondary data. A structured questionnaire was used to elicit response from 101 (sample) out of 134 (Population) SEBI registered and active Venture Capital firms in the recent past. The study analyses the mode of funding by Venture Capital firms and their geographical dispersion. The study ascertains whether Venture Capital firms have enabled innovation in the Indian context during the recent past or not. Finally, the study concludes that Venture Capital Investments have not been very enabling for innovative technologies in the Indian context, which is contrary to the relevant literature available in the context of USA and other developed nations.

BP Global Energy Outlook 2030

2013 ◽  
pp. 109-128 ◽  
Author(s):  
C. Rühl
Keyword(s):  
Emerging Economies ◽  
Energy Demand ◽  
Fossil Fuels ◽  
Net Energy ◽  
Global Energy ◽  
The Past ◽  
Market Shares ◽  
The Us ◽  
Almost All ◽  
Oil Gas

This paper presents the highlights of the third annual edition of the BP Energy Outlook, which sets out BP’s view of the most likely developments in global energy markets to 2030, based on up-to-date analysis and taking into account developments of the past year. The Outlook’s overall expectation for growth in global energy demand is to be 36% higher in 2030 than in 2011 and almost all the growth coming from emerging economies. It also reflects shifting expectations of the pattern of supply, with unconventional sources — shale gas and tight oil together with heavy oil and biofuels — playing an increasingly important role and, in particular, transforming the energy balance of the US. While the fuel mix is evolving, fossil fuels will continue to be dominant. Oil, gas and coal are expected to converge on market shares of around 26—28% each by 2030, and non-fossil fuels — nuclear, hydro and renewables — on a share of around 6—7% each. By 2030, increasing production and moderating demand will result in the US being 99% self-sufficient in net energy. Meanwhile, with continuing steep economic growth, major emerging economies such as China and India will become increasingly reliant on energy imports. These shifts will have major impacts on trade balances.

A MODERN JUDICIAL SYSTEM IN INDONESIA: LEGAL BREAKTHROUGH OF E-COURT AND E-LEGAL PROCEEDING

2020 ◽  
Vol 9 (2) ◽  
pp. 275
Author(s):  
Dedi Putra
Keyword(s):  
Supreme Court ◽  
Secondary Data ◽  
Primary Data ◽  
Access To Justice ◽  
Judicial Reform ◽  
Legal Service ◽  
Literature Study ◽  
Face To Face ◽  
Legal Proceedings ◽  
Digital Era

The implementation of court in Indonesia has not fulfilled as expected because any parties involving in court has a lack of capacity, consistency, and integrity to provide legal service seriously. Some people assume that court services are not still optimal. To settle the problems, the Supreme Court just has officially issued Regulation No. 1 of 2019 regarding the Administration of Cases and Legal Proceedings in Courts via Electronic Means on 8 August 2019. This regulation is believed as an appropriate solution to face those problems. To elaborate more, this study illustrates a judicial reform in Indonesia, e-court, and access to justice, the conception of e-court including the performance of e-court and its drawbacks and challenges in the digital era. The research method uses normative research by approaching legal review and literature study. The technique of primary data collection applies Supreme Court regulation while means of secondary data are collected from concept or theory as set out under bibliography. Judicial reform in Indonesia is indicated by issuing new regulation regarding e-Court and e-Litigation, the implementation e-Court itself has been attributed to 32 courts consisting of general religious, and state administrative courts. Through e-Court, access to justice more transparent and accessible. Besides, justice seekers have no worries regarding distance issues as of e-Court may allow them to fight in court without face to face. Parties have no doubt relating to the acceleration of court to settle any dispute in Indonesia.

KETIDAKEFEKTIFAN KEBIJAKAN ANTI-DUMPING PRODUK IMPOR BAJA INDONESIA: SEBUAH ANALISIS AWAL

2017 ◽  
Vol 11 (2) ◽  
pp. 143-168
Author(s):  
Aditya Paramita Alhayat
Keyword(s):  
Government Regulation ◽  
Best Practice ◽  
Secondary Data ◽  
Information Services ◽  
Global Trade ◽  
Trade Patterns ◽  
Safeguard Measures ◽  
The Us ◽  
Before And After ◽  
The Government

Meskipun Indonesia telah mengenakan tindakan anti-dumping terhadap beberapa jenis produk baja, namun impor produk tersebut masih meningkat. Salah satu kemungkinan penyebabnya adalah importasi melalui produk yang dimodifikasi secara tidak substansial atau melalui negara ketiga yang tidak dikenakan tindakan anti-dumping, yang dalam perdagangan internasional umum disebut sebagai praktik circumvention. Studi ini ditujukan untuk membuktikan bahwa circumvention mengakibatkan tindakan anti-dumping atas impor produk baja Indonesia tidak efektif dan untuk memberikan masukan berdasarkan praktik di negara lain supaya kebijakan anti-dumping Indonesia lebih efektif. Circumvention dianalisis dengan membandingkan pola perdagangan antara sebelum dan setelah pengenaan bea masuk anti-dumping (BMAD) menggunakan data sekunder dari Badan Pusat Statistik (BPS) maupun Global Trade Information Services (GTIS). Hasil analisis menunjukkan adanya indikasi kuat bahwa circumvention mengkibatkan pengenaan tindakan anti-dumping impor produk baja di Indonesia menjadi tidak efektif. Oleh karena itu, sangat penting bagi Pemerintah Indonesia untuk segera melakukan penyempurnaan terhadap Peraturan Pemerintah No. 34/2011 tentang Tindakan Antidumping, Tindakan Imbalan, dan Tindakan Pengamanan Perdagangan dengan memasukkan klausul tindakan anti-circumvention yang setidaknya mencakup bentuk-bentuk dan prosedur tindakan, sebagaimana yang telah dilakukan beberapa negara seperti: AS, EU, Australia, dan India. Although Indonesia has imposed anti-dumping measures on several types of steel products, the import of steel products is still increasing. One possible cause is that imports are made by non-substantial modification of product or through a third country which is not subject to anti-dumping measures, which is generally referred as circumvention practice. This study is aimed to prove that circumvention made Indonesian anti-dumping actions on the steel products ineffective. This also study provides recommendation for a best practice for other countries so that Indonesia's anti-dumping policy can be more effective. Circumvention was analyzed by comparing trade patterns between before and after the imposition of anti-dumping duty using secondary data from the Central Bureau of Statistics (BPS) and the Global Trade Information Services (GTIS). The results of the analysis indicate that circumvention became the reason why Indonesian anti-dumping measures on imported steel products are ineffective. Therefore, it is very important for the Government of Indonesia to immediately make amendments to the Government Regulation No. 34/2011 on Antidumping, Countervailing, and Safeguard Measures by adopting clauses of anti-circumvention. This can be done bycovering the forms/types and procedures of action, as has been implemented by several countries such as the US, EU, Australia, and India.

Terms and Balance of Trade of Indian Agricultural Sector during Pre and Post-WTO Period

2020 ◽  
pp. 288-293
Keyword(s):  
Agricultural Sector ◽  
Secondary Data ◽  
Terms Of Trade ◽  
Basmati Rice ◽  
Agricultural Exports ◽  
Unit Value ◽  
The Us ◽  
Balance Of Trade ◽  
Frozen Shrimp ◽  
Plantation Crops

India is the world’s third-largest economy after the US and China. India is also one of the leading producer of spices, fish, poultry, livestock and plantation crops, and leading exports consisted of basmati rice, meat of bovine animals, frozen shrimp and prawns, cotton and refined sugar. The study was based on secondary data collected from the various published sources, viz., various issues of handbook of RBI, FAO trade yearbook, Statistical Abstract of India, FAOSTAT, etc. The data were grouped into two periods Pre-WTO 1975-94 and Post-WTO 1995-2015.The exports volume indices for agricultural sector of India were increased by 129.41 percent from 17 in 1975 to 39 in 1994. Besides, the volume indices of imports declined by 56.16 percent from 73 in 1975 to 32 in 1994 for agricultural sector of India. The unit value indices of agricultural exports of India declined by 17.69 percent from 113 in 1975 to 93 in 1994. However, the agricultural import indices grew considerably 171.42 percent from 42 in 1975 to 114 in 1994.The quantity terms of trade for agricultural sector of India was deteriorated by 80.89 percent from 429.41 in 1975 to 82.05 in 1994. Likewise, value terms of trade for agricultural sector of India also depreciated by 67.44 percent from 269.05 in 1975 to 81.58 in 1994. The exports volume indices for agricultural sector of India were increased by 125 percent from 72 in 1995 to 162 in 2015. The volume indices of imports were also enlarged by 934.78 percent from 23 in 1995 to 238 in 2015 for agricultural sector of India. The unit value indices, which measure the average price realization, indicated a significant increase in unit value indices of agricultural exports of India turn up by 131.76 percent from 85 in 1995 to 197 in 2015. However, the agricultural import indices declined by 0.64 percent during post-WTO period. The quantity terms of trade, as well as value terms of trade for agricultural sector of India, was improved by 359.95 and 133.25 percent, respectively during post-WTO regime. The trade balance of Indian agricultural sector showed a favorable balance during pre-WTO period as well as post-WTO period.

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