Does the market reward corporate venture capital activity?

• Autor(a) principal: Schöntaube, Tom
• Data de Publicação: 2017
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10071/16130
• topic: Corporate Investment; Corporate governance; Venture capital; Innovation; Finanças; Venture capital; Capitalização bolsista; Análise de risco

This paper aims to empirically research if there are higher stock returns when a large company has an active corporate venture capital arm compared to its competitor without an active corporate venture capital arm. The regression outcome shows that there is no significance and that there are no higher stock returns for the time period of 2012-2016 years for a corporation which has an active corporate venture capital arm compared to a set of comparable companies that do not have an active corporate venture capital unit. The dataset consists of 30 corporations with an active corporate venture capital arm and 30 companies with a non-active corporate venture capital arm, in total 60 companies. The mirror portfolio replicates the companies with respect to the sector, market capitalization and risk using the beta of the stocks. The data is handpicked, however, the papers novelty is the empirical approach that hasn’t been done in this way before.