Buchner, A, Espenlaub, S, Khurshed, A et al. (1 more author) (2018) Cross-border venture capital investments: The impact of foreignness on returns. Journal of International Business Studies, 49 (5). pp. 575-604. ISSN 0047-2506
Abstract
Against the background of the growing internationalization of venture capital (VC) investing, this is the first global comparison of the returns generated by individual domestic and cross-border deals. We examine investments worldwide during 1971–2009 and find that cross-border investments significantly underperform compared with equivalent domestic investments. Returns are negatively affected by geographic distances, cultural disparities, and institutional differences between the home and host countries. Returns on cross-border and domestic deals also decline after the late 1990s. International portfolio diversification and the saturation of domestic markets may explain why VC investors make cross-border investments despite poor expected returns.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © Academy of International Business 2017. This is an author produced version of a paper published in Journal of International Business Studies. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | venture capital; cross-border; return; IRR; PME; foreignness; distance |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 20 Jun 2019 13:45 |
Last Modified: | 10 Feb 2020 12:49 |
Status: | Published |
Publisher: | Springer |
Identification Number: | 10.1057/s41267-017-0116-6 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:147567 |