管理学报
  Jul. 15, 2025
Home |  About Journal  |  Editorial Board  |  Instruction  |  Subscriptions  |  Advertisement  |  Contacts Us  |  Chinese
J4  2011, Vol. 08 Issue (06): 929-    DOI:
Current Issue| Next Issue| Archive| Adv Search |
VC Investment Strategy Based on the Continuous-Time Real-Options Methodology and Patent-Race Model
 FANG Si-Hai, FAN Wei, ZENG Yong, TAN Ren-You
University of Electronic Science and Technology of China,Chengdu,China

Download: PDF (1903 KB)   HTML (1 KB) 
Export: BibTeX | EndNote (RIS)      
Abstract  

This paper uses a continuoustime realoptions methodology to develop duopoly patentrace model to study financial properties of venturecapital backed startups. Numerical analysis shows that patent races, compared with a joint monopoly, drive a firm to invest more aggressively, which thus causes value dissipation, a higher CAPM beta, a higher return volatility and more negative return correlation when firms intensively compete with others. This high level of return volatility is attributed largely to technological risks and is consistent with empirical findings. Herein, we provide the theoretical support for construction strategy of VCs’ firm portfolio from industrial organization perspective.

Key wordsstrategic real options      patent race      venture capital portfolio      investment strategy     
Received: 16 April 2009     
Service
E-mail this article
Add to my bookshelf
Add to citation manager
E-mail Alert
RSS
Articles by authors
FANG Si-Hai
FAN Wei
ZENG Yong
TAN Ren-You
Cite this article:   
FANG Si-Hai,FAN Wei,ZENG Yong等. VC Investment Strategy Based on the Continuous-Time Real-Options Methodology and Patent-Race Model[J]. J4, 2011, 08(06): 929-.
URL:  
http://manu68.magtech.com.cn/Jwk_glxb/EN/     OR     http://manu68.magtech.com.cn/Jwk_glxb/EN/Y2011/V08/I06/929
Copyright  ©  CHINESE JOURNAL OF MANAGEMENT
Support by Beijing Magtech Co.ltd   support@magtech.com.cn