2023 Fiscal Year Final Research Report
Venture Capital Financing and Methods of Payment in Mergers and Acquisitions
| Project/Area Number |
20K13530
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| Research Category |
Grant-in-Aid for Early-Career Scientists
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| Allocation Type | Multi-year Fund |
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| Review Section |
Basic Section 07060:Money and finance-related
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| Research Institution | Waseda University |
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Principal Investigator |
NGUYEN Duc Giang 早稲田大学, 政治経済学術院, その他(招聘研究員) (70835462)
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| Project Period (FY) |
2020-04-01 – 2024-03-31
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| Keywords | Corporate Finance / Venture Capital / Merger and acquisition / Syndication / Method of Payment / Social Network |
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| Outline of Final Research Achievements |
My research proposal focuses on the relationship between venture capital (VC) investors in target firms and the economic outcomes of mergers acquisitions. I show that venture capital (VC)-backed targets prefer stock as the method of payment in mergers and acquisitions, and the ratio of stock is larger when the targets are financed by a syndicate of VCs. Overall, my research reveals the investors' strategies to hold shares of the acquirers that meet their investment preferences.
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| Free Research Field |
Corporate Finance, Entrepreneurial Finance
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| Academic Significance and Societal Importance of the Research Achievements |
My research is the first investigation into the effect of VC investments on transaction terms and economic outcomes of M&As. It reveals the value creation of VC syndication and explains how VC firms' investment strategies in target firms affect the wealth of acquirer shareholders.
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