Exit Of Companies Research Articles

Pathways to Success: The Interplay of Industry and Venture Capital Clusters in Entrepreneurial Company Exits

This study investigates the dynamics within entrepreneurial ecosystems, focusing on the influence of venture capital (VC) financing clusters and industry clusters on startup success. VC financing clusters, geographic hubs with intense VC funding activities, and industry clusters, regions with concentrated sector-specific firms, are integral components. Expanding existing research that links proximity to these clusters with successful exits through mergers and acquisitions (M&A), our study includes initial public offerings (IPOs) as a vital exit strategy. Results show that affiliations with venture capitalists in prominent VC financing clusters enhance M&A and IPO success for startups. Intriguingly, startups in industry strongholds exhibit a greater likelihood of M&A success, but, this effect is not seen for IPO exits. Additionally, the absence of startup co-location with venture capitalists in VC financing hubs does not impact IPO exits but hinders M&A success. These nuanced insights highlight the complex relationships within entrepreneurial ecosystems and underscore the need for tailored perspectives considering diverse exit pathways.

Firm performance and markets: survival analysis of medium and large manufacturing enterprises in Indonesia

AbstractThis study identifies the effect of firm performance, especially efficiency, on firm survival. This study applies efficiency calculations using a translog model based on both time-invariant and time-varying production functions and the Ackerberg–Caves–Frazer (ACF) model to overcome the endogeneity problem in the estimation of the production function. The data used are firm-level data, which are medium and large manufacturing company censuses with an observation period from 1995 to 2015. This study used two estimation techniques: the Cox proportional hazard model and Poisson regression. I estimate the Cox regression with firm-level data, whereas the Poisson regression is estimated with aggregate data for 2-digit ISIC. Estimates at the aggregate 2-digit ISIC level are intended to not only see the effect of efficiency on companies that survive but also on companies that enter and exit. Firm-level evidence shows that a company’s efficiency reduces the hazard ratio or increases its survival time. Moreover, consistent with firm-level results, the aggregate-level estimation shows that efficiency increases the chances of survival and entry of companies into Indonesia and reduces the rate of company exit from the Indonesian market. This shows that a company's level of technical efficiency makes an important contribution to the survival of manufacturing companies in Indonesia.

Relatedness and regional economic complexity: Good news for some, bad news for others

PurposeThis article aims to evaluate the entry and exit of companies from local productive structures, with a specific focus on the sectoral complexity of these activities and the complexity of these portfolios. The study focuses on empirically demonstrating the thesis that related economic diversification exacerbates the development gap between more and less complex regions.Design/methodology/approachThe article uses indicators formulated by the economic complexity approach. They allow a relevant descriptive analysis of the economic diversification process in Brazilian micro-regions and provide the foundation for the econometric tests conducted. Through three distinct estimation strategies (OLS, logit, probit), the influence of complexity and relatedness on the entry and exit events of firms from local portfolios is tested.FindingsIn all estimated models, the stronger relationship between an activity and a portfolio significantly increases its probability of entering the productive structure and, at the same time, acts as a significant factor in preventing its exit. Furthermore, the results reveal that the complexity of a sector reduces the probability of its specialization in less complex regions while increasing it in more complex regions. On the other hand, sectoral complexity significantly increases the probability of a sector leaving less complex local structures but has no significant effect in highly complex regions.Research limitations/implicationsDue to the data used, the indicators are calculated considering only formal job numbers. Additionally, the tests do not detect the influence of spatial issues. These limitations should be addressed by future research.Practical implicationsThe article characterizes a prevailing process of uneven development among Brazilian regions and brings relevant implications, primarily for policymakers. Specifically, for less complex regions, policies should focus on creating opportunities to improve their diversification capabilities in complex sectors that are not too distant from their portfolios.Originality/valueThe article makes an original contribution by proposing an evaluation of regional diversification in Brazil with a focus on complexity, introducing a more detailed differentiation of regions based on their complexity levels and examining the impact of sectoral complexity on diversification patterns within each group.

The Impact of Differentiated Carbon Taxes on New Enterprises’ Strategies When Entering Original Markets with Different Degrees of Market Competition

We view the development of industries with various market competition levels as a dynamic process and investigate the game between a new entrant and the original market with variable market competition degrees under the premise of considering the entry and exit of companies in the industry. Based on this, we explore the prerequisites for the new firm to enter the initial market and construct a recursive formula for the optimal output of individual firms entering the market one at a time, as well as the conditions for the new firm to enter the market in the three scenarios of the original market being mixed strategy, low-carbon type, and traditional type, respectively, and the optimal decision-making behavior once entering the market. We create diversified carbon tax rates for various cost bands of low-carbon production patterns in order to modify the original traditional market and allow the new enterprise to enter the market using a low-carbon production strategy. We anticipate that our study will serve as a theoretical guide for accomplishing a low-carbon shift in production patterns.

Economic, organizational and psychological determinants of early turnover: evidence from a pharmaceutical company in China

PurposeEarly turnover is a worldwide problem that occurs frequently during the first three years of employment. From a multidisciplinary perspective, this study attempts to find the economic, organizational and psychological factors that account for turnover at the early stage of employment.Design/methodology/approachThe authors used turnover records provided by the human resources division of a US pharmaceutical company operating in China of 222 Medical Representatives (MR). The method of Firth's logistic regression for analyzing was employed.FindingsAs an economic factor, the favorable labor conditions (i.e. high ratio of job vacancies) at the time of recruitment were inversely associated with MR subsequent retention. For organizational factors, unsatisfactory supervision and disappointment of intra-organizational career were the major predictors, and job ranks showed a U-shaped relationship to early resignation. Moreover, working pressure was a psychological factor of early exit.Originality/valueThis study provides organizations with empirical implications to devise retention plans for newcomers at risk of attrition, which prevent them from early turnover in the industry facing a talent shortage. Studies based on the company exit records have little been done in turnover literature.

Russian “Jerusalem Project” of Mid-19th Century : Activities of B. P. Mansurov and Russian Society of Shipping and Trade

The activity of the official of the Maritime Ministry B. P. Mansurov as an agent of the Russian Society of Shipping and Trade is considered. The relevance of the study is due to the fact that in 1857—1860 the Russian Society of Shipping and Trade combined the tasks of setting up new transport lines in the East and caring for Russian pilgrims. It is noted that Mansurov’s activities marked the beginning of the construction of Russian Palestine. It is shown that Mansurov’s reports became the main documents of the “Jerusalem Project”, designed to unite different departments in order to strengthen Russia’s influence in the East. It is emphasized that Mansurov drew the attention of both the authorities and the Russian society to the situation of the pilgrims and contributed to the successful construction of Russian Palestine. The novelty of the research lies in the introduction of new documents into the scientific circulation, allowing to trace the history of relations between Mansurov and the Russian Society of Shipping and Trade, the reasons and process of the shipping company's exit from the Jerusalem Project, financing of the care of pilgrims by the Russian Society of Shipping and Trade.

Formation of breakthrough competencies for bachelors of tourism

The relevance of the study of breakthrough competencies is due to the growth of competitiveness in the international and Russian markets for services of young specialists. The rapidly changing economic conditions in which the modern tourism industry operates are associated with the development of digital technologies in tourism, the improvement of the transport system, hotel chains, the globalization of the tourism business, the massive exit of companies working in the tourism industry online, the transformation of consumer behavioral characteristics, new practices, and consumption patterns services. This article is aimed at identifying breakthrough competencies that representatives of the tourism industry and the institutions and communities interacting with it designate as significant for the formation and implementation of a development strategy aimed at anticipating and forming new markets and niches in the tourism industry that contribute to its sustainable development. The aim of the study is to study breakthrough competencies that form the general competence of a graduate of a tourism university. The main method in the study of this problem is the method of questioning, carried out among specialists in the tourism industry and students studying in this area. The sample also included teachers who work at the Department of Tourism. The experimental base of the study was the Petrozavodsk State University.

РАЗРАБОТКА СИСТЕМЫ МЕР ПО УПРАВЛЕНИЮ ПРОЦЕССАМИ ТРАНСНАЦИОНАЛИЗАЦИИ В СЕЛЬСКОМ ХОЗЯЙСТВЕ В КОНТЕКСТЕ УСКОРЕНИЯ ИНТЕГРАЦИИ НА ПРОСТРАНСТВЕ ЕЭАС

The transnationalization of world economic relations is one of the most pressing trends in the modern world economy. The most important feature of the globalization of the world economy is the transnationalization of business and the active exit of companies beyond national borders in order to expand markets for products and make investments. The processes of transnationalization of production and capital, the institutional units of which are transnational companies, are the driving force of not only the modern world economy, but also develop in the EAEU space. Integration leads to the emergence of economic interconnection between states and contributes to the emergence and formation of new supranational economic entities - transnational corporations - transnational management structures. The processes of transnationalization in agriculture are proceeding at a slower pace, which is associated with the low investment attractiveness of this sphere of economic activity in comparison with others, such as industrial and financial spheres. However, transnational processes today affect all economic spheres and the EAEU agricultural market is no exception. The process of integrating the agri-food complex of the EAEU into the world system is possible both through the creation of joint TNCs and through the arrival of foreign TNCs in the EAEU. The main economic prerequisite for the transnationalization and internationalization of agriculture in the EAEU is the concentration and centralization of both international capital and the capital of the EAEU member states. The article is devoted to the study of the processes of transnationalization in agriculture, the specific features of the synergistic effect in the transnational production system are revealed, indicators for assessing the effectiveness of measures to manage the processes of transnationalization in agriculture are considered.

The Price Dynamics of Hand Sanitizers for COVID-19 in Indonesia: Exponential and Cobweb Forms

This study aims to analyze the impact of the COVID-19 pandemic on changes in handsanitizer prices in Indonesia. This study is motivated by the increasing demand for handsanitizers which has had an impact on price ratings. The method used is an explanatory survey with an exponential form approach for the demand function and Linear Cobweb Form for the supply function. The structure of the hand sanitizer market is assumed to be a perfectly competitive market. The results of the study indicate that despite changes in prices, the numerical analysis shows that prices are stable. The entry and exit of companies in the market does not affect price stability. This finding implies that after the pandemic the prices of handsanitizers will return to normal, so producers and consumers must remain rational.

Destruction and Reallocation of Skills Following Large Company Exit

What happens to redundant skills and workers when a large company closes down in a region? The knowledge embodied in firms is lost when firms exit. However, the skills, competences and knowledge embodied in the displaced employees are suddenly released and can become channels of knowledge transfer for other firms that hire them. This process can be very disruptive. For instance, when a large, old and well-renowned company closes down displacing thousands of workers over a short period of time, then it may be a shock to the regional economy and lead to unemployment and skill destruction. The question then becomes: under which conditions are the redundant workers and their skills reallocated to productive use elsewhere in the regional economy and when do the workers find a job where their specific skills are less valuable to the new employer and the worker must start over acquiring new skills, that is, skill destruction. This study is based on the closure of four shipyards in Denmark from 1987-2000. The analysis is based on detailed longitudinal micro data from a matched employer-employee dataset that allow us to follow the mobility of the laid-off employees in great detail. The analysis shows that mobility of workers to related industries leads to less skill destruction. The presence of related industries in the region matters for the extent of skill reallocation and skill destruction. The voluntarily mobile displaced workers also experience less skill destruction, because they find a job that matches their current skills.

Towards GHG Emissions Neutrality of Aluminium Slug Production: An Industrial Study

The aluminium industry is one of the largest emitters of greenhouse gases (GHG) and accounts for approximately 1 % of global GHG emissions. A large portion of emissions are indirect emissions, due to the large GHG footprint of consumed electricity, while direct energy and process-related emissions are also significant. The aluminium is widely used in packaging, transportation, the building sector and for various other purposes. This study focuses on aluminium slugs, which are semi products made from aluminium alloys and are used as tubes and containers in the pharmaceutical, food and cosmetic industries. Since the aluminium industry is among the largest GHG emitters, a Life Cycle Assessment (LCA) was performed to evaluate the environmental impact of aluminium slug production. Environmental impact assessment was performed using OpenLCA software, the Ecoinvent 3.1 database and self-collected plant data. The study includes the environmental impact of anode production, electrolysis and slug production. The functional unit for the study is 1 t of aluminium slug at the company exit gate. Besides GHG emissions and the related GHG footprint associated with slug production, acidification potential and photochemical oxidation potential are further assessed. Various opportunities for GHG emission reduction are further investigated in accordance with the longer-term company strategy. If more aluminium scrap were used and carbon capture performed, the GHG footprint could be reduced by 65 % compared to the base case.

COMPLETE IT-COMPANY BEFORE OUTLINE IN THE WORLD MARKET OF INFORMATION SERVICES

The article is devoted to the research of the features of the modern market of IT services and the definition of the specific conditions of the market specificity of the advancement of IT services. The question of the specifics of production and implementation of IT services is considered. The necessity of creating an effective foreign economic strategy of the enterprise is substantiated. Based on the analysis of scientific papers by leading economists on the theoretical foundations for the formation of international marketing strategies, it has been established that in international marketing there is no universal model of decision making regarding the company's exit to the external market and each decision is determined by the concrete situation in the market. The study found that for companies that are planning to enter external markets, it is vital to seek international marketing tools that direct the company to the preliminary study of markets of countries that may be commercially viable, the choice of the most favorable region or country, the definition of the method exit to such a market, commercial offers in terms of goods, services and prices, and sales and communications policies. The potential sources of competitive advantage of IT companies in the global IT market are the possession of the unique technology that underlies the creation of products or services, and the innovation of the products or services offered, as well as the ability to improve the quality characteristics of existing products, which is very important for consumers, continuous improvement and updating of assortment of products and services taking into account requirements of the modern market.

CORPORATE SOCIAL RESPONSIBILITY AS A KEY OF STABLE DEVELOPMENT: ANALYSIS OF THE ENTERPRISES OF OIL AND GAS INDUSTRY

Social responsibility of business takes a special place in the terms of modern development strategy of the economy of Ukraine. This responsibility suggests such direction of the enterprise activity, which takes into account not only the personal interests of the company, but also the needs of society. The continuation of European integration processes, the exit of companies into international markets require from the business entities appropriate openness and transparency, coverage of the goals of achieving the goal of the enterprise, the tools at which such a goal is achieved. The multidimensional nature of links, which are arising during the operational activity, leads to the existence of significant impact on the internal and external environment of the enterprise. Issues of corporate social responsibility of public-interest enterprises, which, in particular, are part of the oil and gas industry, are of particular relevance. The article analyses the current state of carrying out socially responsible activity at foreign and domestic enterprises of the oil and gas industry. The components of corporate social responsibility and their impact on the enterprise` functioning and on satisfaction of social needs are investigated. The socially responsible activity has positive nature, however, at the same time, there are certain barriers of the strategy` implementation within the framework of the mentioned activity, among which financing is a key issue that requires the enterprise to properly plan and analyse the costs of socially responsible doing business. The need for planning and evaluating corporate social responsibility programs is highlighted in the article. Using the example of gas transportation enterprise, the SWOT-analysis as an instrument of obtaining information for justified decision-making is reviewed.

(Determinants of Korea's Import and Its Effects on Firm's Distribution)

(Determinants of Korea's Import and Its Effects on Firm's Distribution)

Does the Internationalization of Investors Provide Value for Private Firms?

We examine the impact of internationalizing the investor base of private firms through international venture capital syndication on portfolio company exit and exit success. Our empirical results suggest that an international scope in venture capital syndicates plays an important role in both portfolio firm outcome and exit success. Specifically, we find that relative to deals in which the investor base is purely domestic, private firms that have an international venture capital syndicate have a higher probability of exiting via IPO, higher total deal value when exiting via M&A and higher proceeds when exiting via IPO. Importantly, the amount of internationalization is important. In many cases, the relationship between internationalization and portfolio company outcome and exit success is nonlinear.

Albemarle reports 32% earnings increase on lower sales for full year 2013

For full year 2013, Albemarle Corp reported earnings of US$413.2 million, up 32.6% compared with $311.5 million in 2012. Excluding special and non-operating items, earnings for 2013 were $342.3 million compared with $436.2 million the previous year. Net sales for 2013 were $2.62 billion, down almost 5% from $2.75 billion in 2012, driven by lower metals surcharges, the company's exit from its phosphorus flame retardants business [ADPO, July 2012] and pricing on certain products, partly offset by higher sales volumes.

Exit Taxation within the European Union/European Economic Area – After Commission v. Denmark (C-261/11)

This article provides an analysis of company exit tax regimes with a particular focus on the recent ECJ decision in Commission v. Denmark (C-261/11). The author outlines the acceptable scope of exit tax regimes for companies, analyses unresolved issues, which include the length of deferral, guarantees for deferred exit taxes and interest charges levied on deferred exit taxes and examines the EU compatibility of the proposed Danish exit tax regime.

Albemarle reports sales and earnings declines in 1Q 2013

For the first quarter of 2013, Albemarle Corp reported earnings of US$84.0 million compared to 1Q 2012 earnings of $114.3 million. Excluding non-operating items, 1Q 2013 earnings were $82.7 million compared to $112.6 million for 2012. Net sales fell from $711.7 million in 1Q 2012 to $641.6 million for the comparable quarter this year as a result of the company's exit from the phosphorus flame retardants business [ADPO, July 2012], lower metals surcharges and pricing on certain products.

Private Equity IPOs: Five Executive Compensation Trapsto Avoid

For private equity (PE) funds, an initial public offering (IPO) is often an attractive portfolio company exit strategy. However, since the 2008 recession, PE exits typically have taken place over a significantly longer period—usually years after the IPO is launched. As a result, funds must deal with the complex set of public company considerations around executive compensation in the post-Dodd–Frank world, including shareholder advisory votes, shifting governance guidelines of proxy advisory firms such as Institutional Shareholder Services (ISS) and Glass Lewis &amp; Company (Glass Lewis), and the abrupt change that often occurs when the portfolio company ceases to be a “control” company. Before, during, and for sometime after the IPO, the PE sponsor will control the compensation committee. The authors believe that careful planning by committee members, begun well before the IPO is launched, can help committees avoid the significant executive compensation “traps” of Dodd–Frank. <b>TOPICS:</b>Private equity, legal/regulatory/public policy, manager selection

Distressed Portfolio Company Exit and Cross-border Venture Capital Investors

Drawing upon an escalation of commitment framework, this study investigates how differences between cross-border and domestic venture capital investors in access to information, social and structur...