The Effects Of Syndication On Portfolio Firm Performace

Technology are increasingly important to create firm competitive advantage,which requires firms to innovate continually.Further,firms rely on knowledge and technologies to reach the boundaries of their internal R&D.In the recent years,corporate venture capital(CVC)has become an important instrument in certain high-tech industries,as well as energy and agriculture industries.At the same time,venture capital regards CVC as an important part for the industry.Entrepreneurial firms are seeking to collaborate with CVCs.This dissertation attempts to investigate different aspects of CVCs,including syndicated partner selection and the effects on portfolio firm performance.Chapter 3 examines the determinants of syndicated partner selection in CVCs.As CVCs have different characteristics with IVCs,we expect that they have different criteria in making decisions.The empirical results verify that lead investors are more likely to invite specialized partners.Chapter 4 investigates how syndication affects the portfolio firm performance.The empirical results show that syndication could increase the performance of portfolio firms.There are three main contributions of his dissertation.First,by examining CVC syndication,we complement the literature on CVCs and increases public understanding of CVC.Second,this dissertation shows that agency theory is the rationale why firms syndicate.Third,this dissertation confirms that syndication influences firm performance positively.