Please use this identifier to cite or link to this item:
Title: The strategic use of corporate venture financing for securing demand
Authors: Riyanto, Y.E. 
Schwienbacher, A.
Keywords: Corporate finance
Link between product market and financial market
Venture capital
Issue Date: 2006
Citation: Riyanto, Y.E., Schwienbacher, A. (2006). The strategic use of corporate venture financing for securing demand. Journal of Banking and Finance 30 (10) : 2809-2833. ScholarBank@NUS Repository.
Abstract: This paper focuses on the strategic role of corporate venture financing carried out by a corporation (a headquarter). When the headquarter finances a venture through its corporate venture-financing arm, it can increase the complementarity between products of the venture and the headquarter. The effect of having an increase in complementarity is a softening of ex post product market competition with rival products. Hence, in deciding whether to finance the venture, the headquarter faces a trade-off between, on the one hand, being more aggressive ex post in the product market, and, on the other hand, using venture financing to soften ex post competition with substitute products. © 2006 Elsevier B.V. All rights reserved.
Source Title: Journal of Banking and Finance
ISSN: 03784266
DOI: 10.1016/j.jbankfin.2005.11.005
Appears in Collections:Staff Publications

Show full item record
Files in This Item:
There are no files associated with this item.

Google ScholarTM



Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.