What drives CVC investments ? : an empirical test of social network theory predictions

Sahut, Jean-Michel (School of Management Fribourg, HES-SO // University of Applied Sciences Western Switzerland) ; Braune, Eric (INSEEC, Lyon, France) ; Teulon, Frédéric (IPAG Business School, France)

Using data on corporate venture capital (CVC) investments by 284 US industrial companies between 2001 and 2013, we analyze the CVC expenditures of each based on their prior position in the syndication network and their financial resources. The generalized-method-of-moments models used show that the annual amount of CVC expenditures ofthese companies depends on the prior number of co-financing relations they have and their cash flows in the previous year, as well as their prior investments. However, the previous centrality of the industrial companies in syndication networks is insignificant, meaning that prior centrality in the VC network does not guide their current CVC expenditures. This result goes against social network theory, which stipulates that the network members strive to improve their centrality in the network they belong.


Article Type:
scientifique
Faculty:
Economie et Services
School:
HEG-FR
Subject(s):
Economie/gestion
Date:
2017
Pagination:
11 p.
Published in:
Economics bulletin
Numeration (vol. no.):
2017, Vol. 37, no 3, pp. 2030-2040
ISSN:
1545-2921
External resources:
Appears in Collection:



 Record created 2017-10-15, last modified 2018-12-20

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