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Corporate Venture Capital and Its Contribution to Intermediate Goods Firms in South Korea *
Author(s) -
Kim Younghoon,
Kim Yeonbae,
Lee JeongDong
Publication year - 2011
Publication title -
asian economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.345
H-Index - 28
eISSN - 1467-8381
pISSN - 1351-3958
DOI - 10.1111/j.1467-8381.2011.02064.x
Subject(s) - venture capital , economics , social venture capital , capital good , corporate venture capital , capital (architecture) , business , monetary economics , market economy , finance , goods and services , archaeology , history
Set by government, corporate, financial and individual sources, venture capitalists in Korea have adapted themselves to the new and uncertain venture capital market through stand‐alone and syndicated investments. The present study raises questions about whether various financial sources contributed differentially to their portfolio firms during the market boom of 2000. Results show that no single capital source showed better performance, and only corporate venture capitalists contributed to intermediate goods firms. The latter finding might reflect the unique ability of corporate venture capitalists to use vertical value‐chain linkages for their investments.