Browsing by Author "Berruti, Leonardo Alfredo"
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- Corporate Venture Capital : parent firm value relationship : firm structure and environment as contingenciesPublication . Berruti, Leonardo Alfredo; Shuwaikh, Fátima HussienMore and more firms are implementing a division of Corporate Venture Capital (CVC) as a strategy to differentiate their portfolio and create value. Through investments in entrepreneurial ventures, companies acquire innovations and new technologies to maintain and increase competitive advantages. Nevertheless, the relationship between CVC and investing (parent) firm remains an important research topic to dive into. Starting from the contingency theory, I propose that a rise in company value via CVC investing is contingent on attentional mechanisms that discipline the selection of fresh investment opportunities. Focusing on U.S. American parent companies of CVC divisions, this dissertation examines the impact of industry and firm-specific determinants on CVC investment activity in various industries, as well as related effects on firm value. An increase in firm value connected with CVC investing, I believe, accrue to firms that adopt specified operational structures and operate in specific environments, with business similarity with the entrepreneurial ventures and operating in the same metropolitan area. I show evidence that parent firm value increases among companies investing in CVC that are operational concentrate and operate in low munificence environments. I find support for my research model in a sample of 1.989 firm-year observations and 159 U.S. American companies between 2000 and 2020. This analysis aims to show that managers of companies which are active in the CVC market should take into considerations the above-mentioned effects when approaching an investment in venture capital, in order to maximize the firm’s gains in terms of innovations and strategy.