scholarly journals Venture Capital Firms’ Specialization, Differences and Complementarities

2016 ◽  
Vol 11 (7) ◽  
pp. 83 ◽  
Author(s):  
Asif Siddiqui ◽  
Dora Marinova ◽  
Amzad Hossain
Keyword(s):  
Venture Capital ◽  
Investment Decisions ◽  
Organizational Form ◽  
Financial Viability ◽  
Investment Strategies ◽  
Firm Resources ◽  
Market Data ◽  
Venture Capital Firms ◽  
Investment Behaviour

<p>The paper analyses the differences in venture capital (VC) firms, proposes a classification of the firms and<br />empirically investigates their investment and co-investment behaviour. The VC firms are not homogeneous and beside funds they possess a diverse set of nonfinancial resources which they optimize. A classification is developed based on VC firm resources and specialization represented by organizational form and affiliation. Based on Australian market data, we classify the VC firms in three categories, namely strategic, financial and independent using resource based theory, and highlight differences. Then the firms’ specialization is related to their portfolio characteristics to identify and analyse differences and complementarities in terms of investment strategies. The influence of specialization in investment and co-investment strategies is also analysed. This study shows that specialization influences investment decisions and co-investor selection. Implications of such investment practices on resource efficiency, financial viability and transition to sustainability are also discussed.</p>

Impact of Venture Capital Firms’ Reputation on Investment Decisions

2013 ◽  
Vol 13 (14) ◽  
pp. 2694-2699
Author(s):  
Xiutian Zheng ◽  
Yongbin Xu ◽  
Lingyan Gu
Keyword(s):  
Venture Capital ◽  
Investment Decisions ◽  
Venture Capital Firms

The profitability of algorithmic trading systems based on football sentiment

2020 ◽  
Vol 42 (1) ◽  
pp. 33-46
Author(s):  
Raúl Gómez-Martínez ◽  
Camila Marqués-Bogliani ◽  
Jessica Paule-Vianez
Keyword(s):  
Financial Markets ◽  
Investment Decisions ◽  
Futures Market ◽  
Algorithmic Trading ◽  
Investment Strategies ◽  
Measurable Effect ◽  
Behavioural Finance ◽  
Trading Systems ◽  
European Football

Behavioural finance has shown that investment decisions are the result of not just rational but also emotional brain processes. On the assumption that emotions affect financial markets, it would seem likely that football results might have a measurable effect on financial markets. To test this, this study describes three algorithmic trading systems based exclusively on the results of three top European football teams (Juventus, Bayern München and Paris St Germain) opening long or short positions in the next market season of the futures market of the index of each country (MIB (Milano Italia Borsa), DAX (Deutscher Aktien Index) and CAC (Cotation Assistée en Continu). Depending on the outcome of the last game played a long position was taken after a victory and a short position after a draw or defeat. The results showed that the algorithmic systems were profitable in the case of Juventus and Bayern whereas in the case of PSG, the system was profitable, but in an inverse way. This study shows that investment strategies that take account of sports sentiment could have a profitable outcome.

How Starting Strategy and Network Structure Shape Problemistic Search: An Examination of Venture Capital Firms

2021 ◽  
pp. 104225872110335
Author(s):  
Jake Duke ◽  
Taha Havakhor ◽  
Rachel Mui ◽  
Owen Parker
Keyword(s):  
Venture Capital ◽  
Network Structure ◽  
Theory Of The Firm ◽  
Behavioral Theory ◽  
Organizational Strategy ◽  
Search Process ◽  
Strategy Research ◽  
Structural Holes ◽  
Starting Point ◽  
Venture Capital Firms

Building on the behavioral theory of the firm, we empirically examine how starting strategies and syndication networks can influence venture capital (VC) firms’ problemistic search. We propose that: (a) depending on a VC’s strategic starting point, that is, the VC’s extent of specialization, the directionality of problemistic search may change to either expanding or contracting search activities; and (b) depending on search direction, structural holes in syndication networks can either impede or facilitate the problemistic search process. In a sample of U.S. VC firms, we find results consistent with our predictions, which have important implications for entrepreneurship and organizational strategy research.

Following momentum and avoiding the “Minsky Moment” evidence from investors on the Financial Instability Hypothesis

2016 ◽  
Vol 8 (3) ◽  
pp. 205-217 ◽  
Author(s):  
Scott Pirie ◽  
Ronald King To Chan
Keyword(s):  
Investment Decisions ◽  
Practical Experience ◽  
Financial Instability ◽  
Investment Strategies ◽  
Momentum Strategies ◽  
Content Type ◽  
Hyman Minsky ◽  
Quantitative Studies ◽  
Regional Markets ◽  
Unstable States

Purpose This study aims to find out how institutional investors use momentum in making investment decisions, and whether their actions are consistent with the Financial Instability Hypothesis of Hyman Minsky. Design/methodology/approach The study discusses the findings of interviews with 25 professional investors from the Hong Kong offices of five global financial institutions. All of the participants have several years of practical experience in global and regional markets. Findings Nearly all the managers interviewed said they use momentum in making investment decisions, and they do this in ways that are consistent with the Financial Instability Hypothesis, in which markets alternate between stable and unstable states. The participants are aware they may contribute to this, but they cannot avoid doing it because of short-term constraints in the present financial system. Originality/value This study adds to our knowledge of how professional investors use momentum in their investment strategies. It complements findings of quantitative studies that show momentum strategies have been profitable in many market settings. It also adds evidence that supports the Financial Instability Hypothesis.

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