• Asian Journal of Innovation and Policy
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• v.11 no.3
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• pp.277-292
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• 2022

This study examines the implications on the valuations of privately held firms when stakes are acquired by venture capitalists in India. In addition, the effect of fund size and revenue multiple is considered as a determinant of firm value. The study is based on a sample of 1229 rounds of funding during the period 2007-2015. The data was obtained from Venture Intelligence. Three major observations emerged based on an OLS regression. Firstly, it is observed that the stake acquired by venture capitalists has a negative effect on firm value. It supports the belief that when a firm reaches its maximum valuation from the promoter's perspective, there is a tendency to liquidate additional stakes. Secondly, a positive association between the revenue multiple and valuation is recognized. Thirdly, the convex relationship (U-shaped) between the fund size and firm valuations as seen in the case of developed economies, appears to be non-existent in India.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.18 no.6
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• pp.133-145
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• 2023

This paper examines whether investors have adapted to the venture capital(VC) investment style. VC firms invest in privately held companies and generate returns by selling them after the lock-up period expires. We analyze the impact on stock prices before and after the lock-up period expiration, and compare the Cumulative Abnormal Return(CAR) between the past period(2015-2017) and the recent period(2020-2022) to investigate the effect of the second venture boom. The main findings are as follows. First, unlike in the past, stock price returns around the lock-up period expiration have been lower than the KOSDAQ index in recent years. Second, the impact on stock prices is significant for both 1-month and 12-month lock-up periods. Specifically, it is confirmed that stocks held by venture capital and professional investors with a 1-month lock-up period respond in advance to their information after the second venture boom. Finally, we find that there is a difference in CAR depending on whether or not the company received VC investment after the second venture boom. Based on our findings, we suggest that VC firms need to revise their exit strategies to improve performance. This includes finding ways to reduce information asymmetry and fees, as well as developing strategies to mitigate market volatility. Additionally, the current lock-up period for VCs should be reconsidered as it may increase the risk of stock price decline. We recommend that the government revise the scope and duration of lock-up periods to protect investors after IPO.

• Journal of Korean Society of Transportation
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• v.25 no.6
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• pp.141-157
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• 2007

This paper evaluates the effects of privatization and deregulation on the firm-specific efficiency and total factor productivity (TFP) growth in the Korean and Japanese railways. Using a stochastic frontier approach and a generalized translog functional form, the paper specifies the equation system consisting of a multiproduct variable cost function and input share equations which is estimated with Zellner's iterative seemingly unrelated regression and the corrected least squares method. The Korean and Japanese railway firms are assumed to produce three outputs (Shinkansen passenger-kilometers, incumbent railway passenger-kilometers, ton-kilometers of freight) using three input factors (labor, fuel, maintenance and rolling stock). A monetary value of the ways and fixed installations held by the railroad firm is also included as a quasi-fixed input. The empirical results indicate that the average estimate of cost inefficiency is 2.57% for the total sample and on the average, JNR and JR Kyushu are found to be worst efficient while the most efficient railway firm in the sample is JR West. Also the cost efficiency levels of seven JRs have been improved after the reform and privatization of JNR. The findings also indicate that TFP growth of the privately-owned JRs are higher than those of the government-owned KNR and JNR. Three-island JRs and JR Freight have slightly higher TFP growth than Honshu JRs as well. Thus, the results suggest that managerial autonomy and increased competition via deregulation have improved efficiency and TFP growth.

• Journal of the Korean Society for Library and Information Science
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• v.18
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• pp.55-98
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• 1990

This research attempts to verify the hypothesis that the workers in the small-and medium-sized industries use more informal information channels than formal ones do to get the information necessary to industrial activities. Information sources are divided by the internal and the external ones and these are sub-divided by their acquiring channels, publishers and holding institutions. It is intended to investigate the information sources according to the use frequency, age, origin and format of documents used. The degree of benefit to the workers in their practical work through the use of information sources and the use frequency of information sources by the department and years of experience are also investigated. The data to test the hypothesis was collected through the questionnaires distributed to the workers in 300 sampled firms from June 5 to June 20, The following facts have been verified as the result : 1. Workers in industries acquire information mainly through the contacts with the colleagues or superiors in their departments, and the junior workers depend more on the colleague and superiors than senior workers are. 2. Among the documents published internally, the ones from the research and development departments are mostly used. The documents issued by the worker's own departments are also frequently used and the senior workers, the more frequently use the internal publications than the junior workers do. 3. Among the internal documents stored in various places in the industries, the documents kept in the worker's own departments are used most frequently. The senior workers the more use privately owned documents than the junior workers do. 4. As far as the external channels are concerned, information is obtained mainly through suppliers of equipment and raw materials and the use frequency of information channels varies according to department. The senior workers the more receive information through supporting institution, seminar and exhibition than the junior workers do. 5. Among the external publication, the ones published by the industrial supporting institutions are heavily used and the workers in research and developments frequently use the external publications. 6. The documents held in governmental industrial institutions and industrial supporting institutions are heavily used compared with the ones stored in other external institutions. The holding places of frequently used documents vary according to the working departments. 7. The degree of benefit to practical work performance resulted from the internal information use is less than by the use of external information. 8. The documents published more than five years ago are more used than the ones of less than five years, Korean and Japanese documents are used frequently and catalogues, patents and standards are used to a great extent. The documents are used differently in accordance with work departments.