Corporate Venture Capital, Real Option and Corporate Value Creation

Abstract

Abstract:

In the context of "PE + listed companies", this paper examines the relationship between CVC program investment and corporate value based on real option theory, and moderating effect of uncertainty, competition and CVC program features. We find that CVC program investment has a positive effect on corporate value by improving the strategic flexibility value of real options. Uncertainty has a positive moderating effect on the relationship between CVC program investment and corporate value. Competition has a negative moderating effect on the relationship between CVC program investment and corporate value. CVC program heterogeneity will also impact the relationship between them.

Key words: corporate venture capital, real option, corporate value creation, uncertainty, CVC program

Wang Susheng, Kang Yongbo, Peng Ke. Corporate Venture Capital, Real Option and Corporate Value Creation[J]. , 2017, 29(9): 110-121.

References

[1] Souitaris V., Zerbinati S., Liu G. Which Iron Cage? Endo-and Exoisomorphism in Corporate Venture Capital Programs[J]. Academy of Management Journal, 2012,55(2):477-505
[2] Narayanan V. K., Yang Y., Zahra S. A. Corporate Venturing and Value Creation:A Review and Proposed Framework[J]. Research Policy, 2009,38(1):58-76
[3] Dushnitsky G. Corporate Venture Capital:Past Evidence and Future Directions[M]. UK:Oxford University Press, 2006
[4] Gaba V., Dokko G. Learning to Let Go:Social Influence, Learning, and the Abandonment of Corporate Venture Capital Practices[J]. Strategic Management Journal, 2016,37(8):1558-1577
[5] Lee S. M., Kim T., Jang S. H. Inter-organizational Knowledge Transfer through Corporate Venture Capital Investment[J]. Management Decision, 2015,53(7):1601-1618
[6] Chemmanur T. J., Loutskina E., Tian X. Corporate Venture Capital, Value Creation, and Innovation[J]. Review of Financial Studies, 2014,27(8):2434-2473
[7] Maula M. V. J., Keil T., Zahra S. A. Top Management's Attention to Discontinuous Technological Change:Corporate Venture Capital as an Alert Mechanism[J]. Organization Science, 2013,24(3):926-947
[8] 乔明哲,陈忠卫,杜运周,等. 国外公司创业投资中组织间学习研究述评[J]. 管理学报, 2012,9(10):1554-1561
[9] Asel P., Park H. D., Velamuri S. R. Creating Values through Corporate Venture Capital Programs:The Choice between Internal and External Fund Structures[J]. Journal of Private Equity, 2015,19(1):63-72
[10] Dushnitsky G., Lenox M. J. When do Incumbents Learn from Entrepreneurial Ventures?:Corporate Venture Capital and Investing firm Innovation Rates[J]. Research Policy, 2005,34(5):615-639
[11] Yang Y., Narayanan V. K., De Carolis D. M. The Relationship between Portfolio Diversification and Firm Value:The Evidence From Corporate Venture Capital Activity[J]. Strategic Management Journal, 2014,35(13):1993-2011
[12] Dushnitsky G., Lenox M. J. When does Corporate Venture Capital Investment Create Firm Value?[J]. Journal of Business Venturing, 2006,21(6):753-772
[13] Tong T. W., Li Y. Real Options and Investment Mode:Evidence from Corporate Venture Capital and Acquisition[J]. Organization Science, 2011,22(3):659-674
[14] Baldi F., Baglieri D., Corea F. Balancing Risk and Learning Opportunities in Corporate Venture Capital Investments:Evidence from the Biopharmaceutical Industry[J]. Entrepreneurship Research Journal, 2016,5(3):221-250
[15] Mohamed A., Schwienbacher A. Voluntary Disclosure of Corporate Venture Capital Investments[J]. Journal of Banking & Finance, 2016,68(7):69-83
[16] Titus V. K., Anderson B. S. Firm Structure and Environment as Contingencies to the Corporate Venture Capital-parent Firm Value Relationship[J]. Entrepreneurship Theory and Practice, 2016,40(12):1-25
[17] Lee S. U., Kang J. Technological Diversification Through Corporate Venture Capital Investments:Creating Various Options to Strengthen Dynamic Capabilities[J]. Industry and Innovation, 2015,22(5):349-374
[18] 陆方舟,陈德棉,乔明哲. 公司创业投资目标、模式与投资企业价值的关系——基于沪深上市公司的实证研究[J]. 投资研究, 2014,33(1):57-71
[19] 万坤扬,陆文聪. 创业企业知识异质性与公司投资者知识创造[J]. 科研管理, 2016,37(2):9-19
[20] 翟丽,鹿溪,宋学明. 上市公司参与公司风险投资的收益及其影响因素实证研究[J]. 研究与发展管理, 2010,22(5):104-122
[21] Benson D., Ziedonis R. H. Corporate Venture Capital and the Returns to Acquiring Portfolio Companies[J]. Journal of Financial Economics, 2010,98(3):478-499
[22] Hill S. A., Birkinshaw J. Ambidexterity and Survival in Corporate Venture Units[J]. Journal of Management, 2014,40(7):1899-1931
[23] Park H. D., Steensma H. K. When does Corporate Venture Capital Add Value for New Ventures?[J]. Strategic Management Journal, 2012,33(1):1-22
[24] Dimitrova L. Strategic Acquisitions by Corporate Venture Capital Investors[R]. SSRN, 2015
[25] Van de Vrande V., Vanhaverbeke W. How Prior Corporate Venture Capital Investments Shape Technological Alliances:A Real Options Approach[J]. Entrepreneurship Theory and Practice, 2013,37(5):1019-1043
[26] Chesbrough H. W. Making Sense of Corporate Venture Capital[J]. Harvard Business Review, 2002,80(3):90-99
[27] 袁建国,程晨,后青松. 环境不确定性与企业技术创新——基于中国上市公司的实证研究[J]. 管理评论, 2015,27(10):60-69
[28] 刘卫柏,李中. 企业突破性技术创新投资决策的期权博弈模型[J]. 管理评论, 2016,28(4):89-97
[29] Li Y. Duration Analysis of Venture Capital Staging:A Real Options Perspective[J]. Journal of Business Venturing, 2008,23(5):497-512
[30] Van de Vrande V., Vanhaverbeke W., Duysters G. Additivity and Complementarity in External Technology Sourcing:The Added Value of Corporate Venture Capital Investments[J]. IEEE Transactions On Engineering Management, 2011,58(3):483-496
[31] Sahlman W. The Structure and Governance of Venture-Capital Organizations[J]. Journal of Financial Economics, 1990,27(2):473-521
[32] Fama E. F., French K. R. Common Risk Factors in the Returns on Stocks and Bonds[J]. Journal of Financial Economics, 1993,33(1):3-56
[33] Basua S., Phelps C., Kotha S. Towards Understanding Who Makes Corporate Venture Capital Investments and Why[J]. Journal of Business Venturing, 2011,26(2):153-171
[34] Schildt H. A., Maula M., Keil T. Explorative and Exploitative Learning From External Corporate Ventures[J]. Entrepreneurship Theory and Practice, 2005,29(4):493-515
[35] Dushnitsky G., Lenox M. J. When do Firms Undertake R&D By Investing in New Ventures?[J]. Strategic Management Journal, 2005,26(10):947-965