DECISÕES DE DESINVESTIMENTO POR PARTE DAS EMPRESAS DE CAPITAL DE RISCO

Building upon the equilibrium model of Jeng and Wells (2000) and prior research, we study the determinants of the European venture capital market, adding up the unemployment tax, the trade sale exit and the market/book ratio. We collected aggregated data about this market and macroeconomic data, to which we applied panel data models, with fixed and random effects. With the best adequacy of the random effect models, we got confirmation of the importance of some of the already used factors and also the introduced ones, confirming the importance of the unemployment tax and trade sales. The questionnaire to venture capital investors of twenty European countries allowed us to perceive that they are young, have postgraduate education, prefer late stage investments, are indifferent to high-tech versus non high-tech investments, prefer relatively small investments, have strong involvement in portfolio companies, and exiting in the following order: trade sale, write-offs and IPO. Using the data from the questionnaire, OLS and duration models for the hypotheses validation, and having presented the theory of asymmetric information, we analyzed the duration and the divestment decision. We conclude that the aspects related with the investor and their involvements in the business are the most influencial. In the case of IPO, late stage and high-tech investments enjoy greater probabilities of occurrence; while early stage and not high-tech investments are more likely for trade sale

EFEITO DA FLEXIBILIDADE NA DECISÃO DE INVESTIMENTO: UMA APLICAÇÃO À EXPLORAÇÃO DE COBRE

Este estudo permite evidenciar o efeito da flexibilidade na decisão de investimento. Essa flexibilidade foi apelidada de opções reais, opções essas que possuem valor, o qual aumentará o valor de um investimento que as possua. Esta avaliação foi realizada no sector de exploração de cobre em Portugal e para a existência de apenas uma opção real, a de abandono. Na análise utilizaram-se três modelos de avaliação de decisões: o modelo do Valor Actual Líquido; o modelo Binomial e um modelo Binomial Adaptado ao sector da exploração de cobre. Foram utilizadas cotações mensais do cobre do LME; valores para o Producers Price Index; valores de uma OT-Setembro com maturidade mais próxima do horizonte temporal do investimento. Os resultados deste estudo confirmam as conclusões evidenciadas por outros autores de que os tradicionais métodos de avaliação de investimentos não são suficientes para captar o valor associado a opções reais. Dever-se-á recorrer à teoria de valorização de opções para captar o verdadeiro valor de investimentos com opções reais

The success factors for SMEs: Empirical evidence

This paper empirically analyzes the success factors for SMEs. Particularly, the paper intends to analyze if firm age, human resource costs, debt, venture capital funding, investment in innovation and productivity are success factors for SMEs. The effects were tested using static and dynamic panel data, on a data set of 200 Portuguese SMEs. The use of dynamic panel data is important in order to control for: endogeneity; time-invariant characteristics; possible collinearity between independent variables; effects from possible omission of independent variables; elimination of non-observable individual effects; and, the correct estimation of the relationship between the dependent variable in the previous and current periods. Our results reveal a positive impact on success of: human resource costs; investments in innovation; productivity; and, venture capital funding. We also confirm the negative impact of firm age and debt. Also, the results show evidence of persistence in success for the case of one of the success proxies used

Caracterização do mercado de capital de risco na Europa

In this work it was intended to carry through an analysis of the European venture capital market in the last eight years. Also it was done a summary of the venture capital industry history, carrying through a comparison between U.S.A. and Europe. In the European venture capital market analysis it was pointed out aspects about the investment totals, fundraising, investors types and investments types. Among others conclusions, it was found that the banks and pension funds are the main suppliers of capital, that it is a market traditionally domestic and that, in totals invested, the buyout investments are the ones that possess greater representation, but when analyzed the numbers of realized investments it is the expansion investment that predominate

Opções reais: tipologias e sua avaliação

This article intends to evidence the flexibility effect in the investment decision. This flexibility is known by the real options term, these options possess value, which will increase the value of an investment that possesses them. The traditional investments evaluation methods are not enough to catch the value associated with the real options. We will have to appeal to the options valuation theory and in analogy with that catch the true value of investments with real options

European venture capital market characterization

In this work it was intended to carry through an analysis of the European venture capital market in the last eight years. Also it was done a summary of the venture capital industry history, carrying through a comparison between U.S.A. and Europe. In the European venture capital market analysis it was pointed out aspects about the investment totals, fundraising, investors types and investments types. Among others conclusions, it was found that the banks and pension funds are the main suppliers of capital, that it is a market traditionally domestic and that, in totals invested, the buyout investments are the ones that possess greater representation, but when analyzed the numbers of realized investments it is the expansion investment that predominate.Mercado de capital de risco; Europa; EUA

Real options: typologies and its evaluation

This article intends to evidence the flexibility effect in the investment decision. This flexibility is known by the real options term, these options possess value, which will increase the value of an investment that possesses them. The traditional investments evaluation methods are not enough to catch the value associated with the real options. We will have to appeal to the options valuation theory and in analogy with that catch the true value of investments with real options.Opções Reais, Decisão de Investimento, Avaliação de Opções Reais

The exit decision in the European venture capital market

This article analyses the exit decision in the European venture capital market, studying when to exit and how it interacts with the exit form. Using a competing risks model we study the impact on the exit decision of the characteristics of venture capital investors, of their investments and of contracting variables. Our results reveals that the hazard functions are non-monotonic for all exit forms and suggest that, in Europe, Initial Public Offering candidates take longer to be selected than trade sales. Moreover our results show that, in Europe, venture capitalists associated with financial institutions have quicker exits (stronger for trade sales), and highlight the importance of contracting variables on the exit decision. An unexpected result is that the presence on the board of directors leads to longer investment durations

Which criteria matter most in the evaluation of venture capital investments?

Structured Abstract Purpose - This study identifies the importance assigned to the various criteria used by the Portuguese Venture Capitalists (VCs) to evaluate and select early stage venture capital projects. Design/methodology/approach - The data was collected through a questionnaire answered by 20 Portuguese VCs. We use descriptive statistics techniques and non-parametric tests to identify the most valued criteria and test differences in the importance assigned to the criteria of several types of VCs and investments. Findings - The study reveals that personality and experience of the entrepreneur and of the management team are the most valued groups of criteria. VCs with a majority of private share capital value more the personality of the entrepreneur and management team than the companies with a majority of public share capital. Additionally, the VCs that did not yet internationalize consider the personality of the entrepreneur and management team and the financial aspects, to be more important than the VCs that have already expanded abroad. Originality/value – It provides evidence on the VCs behaviour in a small venture capital market. Since most of the existing literature on this area refer to large VC markets, the present study is important to investigate whether the conclusions reached by the previous studies can be extended to a small VC market. Also, this study is a contribution to the literature on the internationalization of VCs and it is the first study that explores the impact of the VCs being internationalized on the value given to the various selection criteria of early stage venture capital projects

The impact of concentration among venture capitalists:revisiting the determinants of venture capital

This article analyzes the impact of the level of concentration among Venture Capitalists (VCs) on the supply of venture capital (VC), through the reduced form model for the equilibrium amount of VC (using a simultaneous equation model on aggregated data from 15 European countries). It is shown that the level of concentration among VCs has a positive effect on VC supply, so creating condi-tions to increase the level of concentration can stimulate VC supply. The findings reveal the importance of unemployment and personal income rate on VC demand and the positive impact of stock market capitalization on VC supply.info:eu-repo/semantics/publishedVersio