scholarly journals Effect of Financial Clusters on Startup Mergers and Acquisitions

2021 ◽  
Vol 10 (1) ◽  
pp. 1
Author(s):  
Saurabh Ahluwalia ◽  
Sul Kassicieh
Keyword(s):  
Mergers And Acquisitions ◽  
Venture Capital ◽  
Venture Capitalist ◽  
Entrepreneurial Ecosystem ◽  
Policy Makers ◽  
Entrepreneurial Ecosystems ◽  
Startup Company ◽  
Time Periods ◽  
Cluster Location

The conventional wisdom has maintained that being in proximity to entrepreneurial ecosystems helps startups to raise financing, develop and grow. In this paper, we examine the effect of a major component of an entrepreneurial ecosystem-financial or venture capital clusters on the exit of a startup through mergers and acquisitions (M&A). We find that probability of successful exit through M&A increases if the venture capitalist invested in the startup is in a venture capital (VC) cluster. Location of the startup in a top VC cluster is not significant for success once we control for the location of the VC in a top VC cluster.Our results are robust to different specifications of the models that use different time periods, reputation of VC, industry, and the quality of the startup company. Our results provide evidence for VCs, startups and policy makers who want to better understand the components of entrepreneurial ecosystems and their relation to the M&A exits of startups.

scholarly journals Do mergers and acquisitions affect information asymmetry in the banking sector?

2020 ◽  
Vol 46 (12) ◽  
pp. 1521-1547
Author(s):  
John S. Howe ◽  
Thibaut G. Morillon
Keyword(s):  
Mergers And Acquisitions ◽  
Information Asymmetry ◽  
Design Methodology ◽  
Banking Sector ◽  
Policy Makers ◽  
Content Type ◽  
Deal Completion ◽  
Asymmetry Measures ◽  
The Impact

PurposeThis paper aims to investigate the consequences of mergers and acquisitions (M&As) on information asymmetry in the banking sector. Specifically, the authors look at whether specific firm or deal characteristic influence information asymmetry levels between insiders and investors, as well as the impact of recent regulation such as the Dodd–Frank Act.Design/methodology/approachThe authors decompose the M&A process into three periods (pre-announcement, negotiation and post-completion period) and document changes in the information asymmetry levels between insiders and investors through the M&A process. The authors capture changes in information asymmetry using six different spread-based information asymmetry measures.FindingsThe authors find evidence that information asymmetry increases following M&A announcement and decreases following deal completion. These findings are more pronounced for acquisitions involving a private target, all-cash deals and for mergers, as opposed to acquisition of assets. We find that overall, successful mergers improve the quality of the information environment, while failed deals degrade it. Additionally, the enactment of Dodd–Frank reduced the magnitude of the changes in information asymmetry during the M&A process. The results are important to regulators, policy makers and investors.Originality/valueTo authors’ knowledge, this is the first study that looks at the effect of bank M&As on information asymmetry as well as the effect of regulations on information asymmetry.

scholarly journals Political entrepreneurship: entrepreneurship ecosystem perspective

2021 ◽  
Author(s):  
Maksim Belitski ◽  
Ana-Maria Grigore ◽  
Anca Bratu
Keyword(s):  
Transition Economy ◽  
Developing Economies ◽  
Holistic Approach ◽  
Entrepreneurial Ecosystem ◽  
Institutional Reforms ◽  
Entrepreneurial Ecosystems ◽  
Weak Institutions ◽  
Political Entrepreneurship ◽  
Political Entrepreneurs

AbstractWe use the entrepreneurial ecosystem perspective to study political entrepreneurship as a form of alignment between disruptive and unproductive entrepreneurs with authorities aiming to get privileged access to resources. Political entrepreneurship (PE) has emerged as a phenomenon in transition and developing economies and may compromise the entrepreneurial ecosystem (EE) objectives. Combining interview and survey data, this study provides an in-depth assessment of entrepreneurial ecosystems in a transition economy and the role that political entrepreneurs play in moderating the effect of resources on the quality of entrepreneurship. Our findings are generalizable to other transition and developing economies as we demonstrate what various configurations of factors increase stakeholders’ perception about EE and directly affect its quality. Our findings reveal that stakeholders appreciate the evolution trends towards mature and productive entrepreneurship, but the progress is slow, nonlinear, with setbacks, still seriously threatened by corruption, lack of competence, and the interference of the political factor as well as regional differences. This study offers implications on how to adopt a place-based and holistic approach to institutional reforms when policymakers aim at creating productive entrepreneurial ecosystems. This study implications are in the adoption of a place-based and holistic approach to institutional reforms when policymakers aim at creating productive entrepreneurial ecosystems. While political entrepreneurship may significantly distort an ecosystem, this study offers recommendations to managers and policymakers who plan to start a business in an environment with weak institutions and the rule of law.

Startup Competitions and their Role in Entrepreneurial Ecosystems: A Conceptual Attempt

2020 ◽  
Vol 64 (4) ◽  
pp. 233-246
Author(s):  
Lennard Stolz
Keyword(s):  
General Framework ◽  
Policy Instrument ◽  
Learning Networks ◽  
Policy Makers ◽  
Entrepreneurial Ecosystems ◽  
Support Organizations ◽  
Study Results ◽  
Positive Climate

AbstractResearch on entrepreneurial ecosystems (EEs) is still advancing as a concept that both practitioners and scholars claim has advanced beyond other approaches to fostering or explaining regional entrepreneurship. However, criticism of the concept centers on a lack of understanding of causes and effects and the importance of single instruments for its functionality. While practitioners and policy makers are jumping on the bandwagon and trying to aim policies directly at entrepreneurial ecosystems, investigation of the role of single instruments and their impact on entrepreneurial ecosystems remains insufficient. Fostering entrepreneurship through startup competitions (SUCs) is a decades-old policy instrument. Today, both scholars and practitioners mention SUCs as an element of entrepreneurial ecosystems, but analyzing them from that perspective remains undone. Building on a regional understanding of entrepreneurship and entrepreneurial ecosystems, this paper provides a novel framework for the role of startup competitions in entrepreneurial ecosystems. Following on previous studies of SUCs, this study identifies core mechanisms and benefits of the competitions and presents a general framework for SUCs. Then, the study results are synthesized with mechanisms central to entrepreneurial ecosystems, e.g., entrepreneurial learning, networks of entrepreneurial-related actors in the region, and financing entrepreneurship. It is argued that startup competitions work as network hubs in entrepreneurial ecosystems because they connect: a) entrepreneurs with each other, b) entrepreneurs with relevant actors (e.g., financiers, experts, entrepreneurship support organizations), c) those actors among themselves. Therefore, the competitions are “anchor events” and strengthen the overall quality of the EE in which they occur. The study also argues that SUCs benefit from a functioning EE’s positive climate for entrepreneurship and the availability of resources. The study is theoretical, and its findings lead to an agenda for further research.

scholarly journals Entrepreneurial ecosystem elements

2019 ◽  
Author(s):  
Erik Stam ◽  
Andrew van de Ven
Keyword(s):  
The Netherlands ◽  
Measurement Instrument ◽  
High Growth ◽  
Entrepreneurial Ecosystem ◽  
Systems Perspective ◽  
Entrepreneurial Ecosystems ◽  
Growth Firms ◽  
Systems View ◽  
Systems Framework

Abstract There is a growing interest in ecosystems as an approach for understanding the context of entrepreneurship at the macro level of an organizational community. It consists of all the interdependent actors and factors that enable and constrain entrepreneurship within a particular territory. Although growing in popularity, the entrepreneurial ecosystem concept remains loosely defined and measured. This paper shows the value of taking a systems view of the context of entrepreneurship: understanding entrepreneurial economies from a systems perspective. We use a systems framework for studying entrepreneurial ecosystems, develop a measurement instrument of its elements, and use this to compose an entrepreneurial ecosystem index to examine the quality of entrepreneurial ecosystems in the Netherlands. We find that the prevalence of high-growth firms in a region is strongly related to the quality of its entrepreneurial ecosystem. Strong interrelationships among the ecosystem elements reveal their interdependence and need for a systems perspective.

Application of Isenberg Model for Entrepreneurial Ecosystems as a Blueprint for Zimbabwe Socio-Economic Devolution

2020 ◽  
pp. 284-305
Author(s):  
Takaruza Munyanyiwa
Keyword(s):  
Significant Role ◽  
Ecosystem Approach ◽  
Entrepreneurial Ecosystem ◽  
Entrepreneurial Ecosystems ◽  
The World ◽  
The Republic ◽  
National Economies

Entrepreneurship plays a significant role in national economies around the world, including the Republic of Zimbabwe, which has largely focused on the socio-economic devolution program. The necessity for entrepreneurship and policymakers around the world currently is to advance the quality of the entrepreneurship outcomes rather than just increase the number of entrepreneurs. To strengthen the context of entrepreneurship and innovation, the authors suggested that governments need to move to what is called an entrepreneurial ecosystem approach. Isenberg's model for the entrepreneurial ecosystem is applied as a catalyst for building a robust entrepreneurial ecosystem under circular economies.

Can Venture Capital Be a Curse?

2010 ◽  
Vol 10 (1) ◽  
Author(s):  
George Kanatas ◽  
Christodoulos Stefanadis
Keyword(s):  
Social Welfare ◽  
Venture Capital ◽  
Venture Capitalist ◽  
Venture Capitalists ◽  
Ipo Underpricing ◽  
Capital Services

Abstract We show that partnering with venture capitalists may be a curse to entrepreneurs in that it reduces their profits in the commercialization phase. Agents rationally infer that a likely reason an entrepreneur who has received managerial assistance (from a venture capitalist) refrains from a lucrative IPO and instead opts for an acquisition may be the low quality of his technology (which is unfixable), rather than of his management (which may be fixable). This leads to lower acquisition prices and greater IPO underpricing. From a social welfare standpoint, venture capital services are under-utilized and technologies are under-commercialized.

scholarly journals A conceptual approach to the role of universities in the entrepreneurial ecosystem

Economica ◽  
2021 ◽  
pp. 81-90
Author(s):  
Tatiana Bucos ◽  
Keyword(s):  
Economic Development ◽  
Entrepreneurial Ecosystem ◽  
Conceptual Approach ◽  
Entrepreneurial Ecosystems ◽  
Start Ups

The article aims to identify the role that universities have in the entrepreneurial ecosystem, respectively in stimulating the emergence of start-ups. The ways in which start-ups contribute to economic development are presented, as well as the factors that influence the number and viability of start-ups launched in a certain region. As a result of the discussions, the importance of the quality of entrepreneurial ecosystems is emphasized in order to stimulate the emergence of start-ups, but also the place of universities in the ecosystem. The ways in which universities could create viable entrepreneurial ecosystems around it are highlighted.

scholarly journals Quantity and quality of childcare and children’s educational outcomes

2021 ◽  
Author(s):  
Jo Blanden ◽  
Emilia Del Bono ◽  
Kirstine Hansen ◽  
Birgitta Rabe
Keyword(s):  
School Achievement ◽  
Additional Term ◽  
Publicly Funded ◽  
Highly Qualified ◽  
Policy Makers ◽  
Quality Rating ◽  
Quality Of Childcare ◽  
The Impact ◽  
School Records

AbstractPolicy-makers wanting to support child development can choose to adjust the quantity or quality of publicly funded universal pre-school. To assess the impact of such changes, we estimate the effects of an increase in free pre-school education in England of about 3.5 months at age 3 on children’s school achievement at age 5. We exploit date-of-birth discontinuities that create variation in the length and starting age of free pre-school using administrative school records linked to nursery characteristics. Estimated effects are small overall, but the impact of the additional term is substantially larger in settings with the highest inspection quality rating but not in settings with highly qualified staff. Estimated effects fade out by age 7.

scholarly journals Introduction to the special issue: multiple jobholding in Europe

2021 ◽  
Vol 27 (2) ◽  
pp. 141-147
Author(s):  
Wieteke Conen ◽  
Karin Schulze Buschoff
Keyword(s):  
Labour Market ◽  
Social Protection ◽  
Special Issue ◽  
Clear Trend ◽  
Policy Makers ◽  
Quality Of Work ◽  
Labour Market Flexibility ◽  
Employment Situation ◽  
Over Time

In a number of European countries there is a clear trend towards increased multiple jobholding. As things stand, however, little is known about the structure and the potential consequences of this increase, notably in terms of quality of work and social protection. This special issue focuses on contemporary forms of multiple jobholding in Europe. Have the structure, nature and dynamics of multiple jobholding changed over time? What are the roles of labour market flexibility, technological change and work fragmentation in the development of multiple jobholding? And do multiple jobholders benefit from similar and adequate employment terms, conditions and protections compared with single jobholders, or are they worse off as a consequence of their (fragmented) employment situation? What implications do these findings have for unions, policy-makers and the regulation of work? The collection of articles in this special issue adds to the literature on emerging forms of employment in the digital age and challenges for social protection, also in light of the COVID-19 pandemic. This introduction initiates a discussion of central debates on multiple jobholding and presents a synopsis of the articles in this issue.

scholarly journals Entrepreneurial ecosystems: Founding figures and research frontiers in economic geography

2019 ◽  
Vol 63 (2-4) ◽  
pp. 55-63 ◽  
Author(s):  
Susann Schäfer ◽  
Heike Mayer
Keyword(s):  
Economic Geography ◽  
Unique Contribution ◽  
Special Issue ◽  
Entrepreneurial Ecosystem ◽  
Ongoing Debate ◽  
Entrepreneurial Ecosystems ◽  
Published Research ◽  
Research Frontiers

Abstract The editorial for the special issue on entrepreneurial ecosystems summarizes the ongoing debate on the entrepreneurial ecosystem concept and portrays the backgrounds of founding figures of the concept. It traces the unique contribution of this issue with regard to recently published research. The contributions deal with the measurement of and the role of specific actors and institutions in entrepreneurial ecosystems.

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