Investment Size Research Articles

Determinants of Venture Investment Size in Indian Unicorn Companies

The objective of this comprehensive study is to elucidate the critical factors that determine the magnitude of venture investment in Indian unicorn companies during subsequent rounds, beginning with the second. With a keen focus on a sample of 37 unicorn firms during the year 2022, the study scrutinizes a plethora of influential elements that may enhance the size of investments within the Indian economic landscape. This research is built upon an exhaustive analysis of the multifaceted elements such as industry, investor experience, initial investment quantum, and a host of other germane factors, that all work in synergy to shape the unique attributes of the Indian startup ecosystem. Moreover, the investment environment of this emerging market is evaluated and compared with global standards to understand the defining characteristics that contribute to its individuality. The study thus serves as an extensive guide for venture capital investors, stakeholders in the Indian startup ecosystem, policy-makers, and researchers by shedding light on any distinctive features of the Indian market that may have contributed to the observed results, and outlining potential future avenues for further investigation. Целью данного комплексного исследования является выявление ключевых факторов, определяющих величину венчурных инвестиций в индийские компании-«единороги» на последующих раундах, начиная со второго. Особое внимание уделяется выборке из 37 компаний-«единорогов» в 2022 году, исследуются многочисленные факторы, способствующие увеличению объема инвестиций в условиях индийской экономики. Это исследование основывается на всестороннем анализе множества элементов, таких как отрасль, опыт инвесторов, начальный объем инвестиций и другие важные факторы, которые совместно формируют уникальные особенности индийской экосистемы стартапов. Кроме того, инвестиционный климат этого развивающегося рынка оценивается и сравнивается с мировыми стандартами для понимания отличительных черт, которые способствуют его индивидуальности. Таким образом, исследование служит всеобъемлющим руководством для венчурных инвесторов, участников индийской экосистемы стартапов, политиков и исследователей, освещая характерные особенности индийского рынка, которые могли повлиять на наблюдаемые результаты, а также указывая на возможные направления для дальнейшего изучения.

Impact of investments in mining on economic growth of Krasnoyarsk Krai

Aim. To evaluate the impact of investments in mineral extraction on the economic growth of Krasnoyarsk Krai using the dynamics of data for 2004–2021.Objectives. To prepare initial data for modeling in comparable prices; to build statistical models with a time lag; to determine the multiplier and gas pedal coefficients of investment; to demonstrate the possibilities of applying the obtained dependencies.Methods. The authors used the method of economic and mathematical modeling, in particular the calculation of socio-economic indicators using mathematical statistics. The regression model was built using the initial data that meet the requirements of comparability and homogeneity, are relevant and statistically reliable.Results. Dependencies reflecting the investment multiplier effect, i.e. the increase in the gross regional product (GRP) and the volume of shipped products in response to the increase in investment in mining were obtained. Dependencies reflecting the investment gas pedal effect are also obtained, showing how increased income affects the size of investment. The dependencies are applied to solve a number of practical problems.Conclusions. It has been established that investments in mining in Krasnoyarsk Krai have an impact on the growth of GRP and the volume of shipped products. The return on investment has a temporary character. The strongest impact of investments in the current year have on the growth of GRP and shipped products for the next year. The multiplier coefficient is 2.72. Increased income affects the size of investments: the growth of income from mining stimulates the growth of induced investments in the following year with the multiplier coefficient, which is equal to 0.14. The comparison of actual values of investments in mineral resources extraction and volume of shipped products with the target values laid down in the Strategy of socioeconomic development of the region until 2030 has been carried out. The target values, according to the Strategy, are determined with the help of the obtained dependencies. It was established that the actual volume of investments is sufficient to ensure the GRP growth in accordance with the Strategy at the first stage; to ensure growth at the second stage it is necessary to increase investments by 12–15 % annually; to ensure growth at the third stage it is necessary to increase investments by 9–13 % annually from the current state. In order to ensure the values of indicators on the volume of production provided for in the Strategy, it is necessary to increase output by 4–6 % annually compared to 2021.

Issues of efficiency of financing the agricultural sector

In many economically developed countries, state support, financial investments in the agricultural industry, increasing productivity and profitability, ensuring the availability of food are the main factors of economic growth, first of all, employment of the population. Purpose - the main problems of financing the agro-industrial complex of the republic and scientific approaches to their solution are considered. Methods - comparative analysis, synthesis, monographic, logical evaluation to determine the mechanisms affecting the effectiveness of state aid and investment. Results - the article analyzes the sources of budgetary allocation of the agrarian sector. The significance of the implementation of targeted programs aimed at improving the quality of life of rural residents through price, tax, leasing mechanisms, soft loans and subsidies is shown. The study presents information for 2018-2022, supplemented by the data of the National Project on the development of agro-industrial complex of the Republic of Kazakhstan for 2021-2025, including the total volume of agro-industrial production and the size of capital investments. The study notes the need to increase the volume of domestic processing industry, allowing agricultural producers to expand the market for products, create conditions for new jobs, attract investment, and contribute to economic and social stability. Conclusions - specialization of rural areas, development of technical map and related organization of production in promising villages and district centers, increase in exports, distribution of online services are strategic directions of development of food complex, economic activity of agroformations. The use of external resources gives an opportunity to improve financial results, and farms - to increase income from core activities. When planning large investments in agricultural projects, one of the key criteria is the choice of capital structure to support the investment process.

Factors Affecting FDI Attraction in Some Southeast Asian Countries

The study analyzes factors affecting FDI attraction in some Southeast Asian countries including (Indonesia, Thailand, Philippines, Malaysia, Vietnam). Using FEM, REM and FGLS models with panel data for the period 2010 - 2020, the analysis results show that market size, trade openness and net capital structure of the economy affect investment. foreign direct investment.

Motivating Corporate Social Responsibility Investment and Social Impact through Relative Performance Information

ABSTRACT Firms often struggle to motivate managers’ CSR performance, and little attention has been paid to how performance evaluation can assist in this effort. We address this gap by examining the effects of relative performance information (RPI) on risky CSR investment decisions. Compared to when no RPI is provided, we find that providing RPI based on the size or impact rate of CSR investments improves performance on the ranked dimension, although effects are weaker in more risk-averse managers. We also find that providing both types of RPI separately may lead to similar performance as providing just one type, and that RPI based on a single composite measure that combines performance dimensions leads to the greatest performance along each dimension. Our study contributes to research and practice by identifying how RPI can motivate larger, more impactful CSR investments and by highlighting the role that managers’ risk preferences can play in these decisions. Data Availability: Data are available upon request.

Mitigating Financial Investment Polarization: The Role of Digital Payments in Enhancing Household Participation

ABSTRACT This study examines the impact of digital payments on household financial asset investment, using the China Household Finance Survey (2013–2019). Our findings indicate that digital payments positively affect financial market participation and investment size, reshaping asset allocation structures. While households using digital payments show increased participation and investment amounts across various financial assets, a reduction in the weight of deposits is evident. The study highlights two key channels through which digital payments influence financial behavior: enhancing subjective financial literacy and increasing households’ attention to financial information. The research emphasizes the role of digital payments in mitigating polarization effects in household financial asset allocation.

Relationship commitment regulation: Influencing a partner's commitment to achieve one's commitment goals

AbstractWe introduce a model of relationship commitment regulation, which describes how romantic partners might use empirically‐validated antecedents of commitment level strategically to influence a partner's commitment toward their relationship based on certain commitment goals they have for the relationship. People are generally aware of and relatively accurate with respect to knowing their partner's level of commitment and also have preferences regarding their desired level. We summarize key antecedents of commitment level (i.e., satisfaction level, alternative quality, investment size, future plans, and subjective norms) and then describe how each can be manipulated via relationship maintenance activities to move a partner's commitment level up or down, or maintained at a desired current level. Collectively, the model provides a strategic roadmap for actions one can take to foster desired commitment in one's partner and provides insight into the dyadic processes and outcomes of relationship maintenance.

Shadow capital in venture financing: Selection, valuation, and exit dynamic

Non-venture capital private equity funds (PEs) have become increasingly interested in investing in entrepreneurial firms. We investigate how PEs invest and perform in comparison to VCs, and the implication of PEs’ participation on ventures. We show that PEs are more likely to invest in ventures after typical investment period and when there was substantial capital overhang. PEs prefer the expansion and late-stage ventures. Investment size and valuation are larger/higher with PEs’ participation. We further find that IPOs and secondary buyout are more prevalent among ventures with PE investments. PEs’ participation also allows ventures more time to get ready for exit.

Financing green industrial transitions: A Swedish case study

Achieving global climate targets requires massive reductions in greenhouse gas emissions from energy-intensive industrial sectors. We investigate whether financing is an important obstacle for radical emission reduction in industry. We study Sweden as a case of a country that is comparatively advanced in its planning for transitions to low-carbon industrial production. We find that the size of capital investments or the availability of financing for these investments is not perceived as a significant obstacle. There are a number of factors explaining this, such as the fact that the companies involved in this study are well-established, large corporates, and hence well placed to finance their transition plans through conventional corporate finance channels, that conditions for market demand are good in the EU, and that many of the firms are in early stages of developing new technologies, when capital need is smaller compared to later stages. We also find that many financial actors express a strong appetite for sustainable investments. Finally, we observe that despite financing not being perceived as an obstacle, there is still a large and important role to play for public actors for reducing the risk of investments and accelerating the pace of change going forward.

Open Innovation Signals: Exploring the Financial Data with Patents

The study aims to explore how to measure firms’ open innovation from financial statements. So, our research question is as follows: How can we determine firms’ open innovation signals directly or indirectly from financial statements? This study used data from the US financial statements and patent registration database from 2016 to 2018 to answer this research question. Three manifest signals of open innovation in financial data were found. First, subsidiary or related firm investment in financial data may have a negative relationship with open innovation because open innovation (i.e., the co-application of patents) could decrease subsidiary or related firm investment. But there are differences between the top and bottom twenty firms. Second, internal R&D investment (I R&D) in financial data may have a positive relationship with open innovation because I R&D could trigger inward open innovation. If I R&D combines with an open innovation strategy, it increases the size of subsidiary or related firm investment as a kind of inward open innovation. Third, free cash flow (FCF) in financial data may have a positive relationship with open innovation because high FCF could support outward open innovation.

Effect of herding behavior and overconfidence bias on investor’s financial decisions: A case of investment in crypto currency in Pakistan

There are various behavioral aspects that influence the financial decisions of individual investors, such as overconfidence, herding behavior, loss aversion, and regret aversion. Other psychological elements may play a substantial influence in deciding the success or failure of any financial action. The primary aims of the present research article are to examine the effects of overconfidence bias and herding behavior on individual financial decisions regarding crypto currency investment. The markets for crypto currencies are extremely sensitive to any minute or significant changes in the economy, as well as to any changes in the individual behaviors of investors. To achieve these aims, 650 questionnaires were distributed to individual investors employed by various financial institutions, multinational corporations, including oil and gas exploration and production companies, operating in Pakistan, individual investors dealing in stocks, and students regardless of investment size. Purposive sampling was used to choose 311 valid responses from a total of 593. Those investors that engage in crypto currency investments were deemed valid responses. Classifications of investments were outlined, and demographic information was requested from respondents. SPSS-based empirical analysis provided the basis for the conclusions. The primary findings indicate that both overconfidence bias and herding tendency have a favorable and statistically significant impact on investors' financial decisions when investing in cryptocurrencies. In this study's sample, however, the majority of investors were overconfident in their crypto currency investing decisions.

Overview of Sales and Investment in Drugs Branded by Pharmacy "X" in Kampung Satu District, Tarakan City Using ABC Analysis for the 2022 Period

Pharmacies as facilities that are authorized to manage the inventory of pharmaceutical supplies need to anticipate inventory problems, both over stock and out stock. Pareto ABC analysis is one solution to overcome planning and procurement problems which tend to be ineffective and inefficient. This research aims to determine the sales and investment value of branded drugs at one of the private pharmacies in Tarakan City. This research is a retrospective study using the Pareto ABC analysis method on branded drug sales data in 2022. Based on sales data, 761 types of branded drugs were analyzed. The data is then grouped based on sales value. As for the results obtained, group A consisted of 189 types of drugs, or the equivalent of 24.84% of the total types of drugs, with a sales value of 17,986 items and an investment value of IDR. 209,828,250. Meanwhile, group B consists of 205 types of drugs, or the equivalent of 26.94% of the total types of drugs, with a sales value of 5,155 items and an investment value of IDR. 60,177,500. Meanwhile, for group C there are 367 types of drugs, or 48.23% of all types of drugs, with a sales value of 2,573 items and a total investment value of IDR. 30,107,100. This indicates that inventory monitoring and management can be adjusted to the characteristics and investment size of each drug category.

Optimal investment timing and size decision‐making with jump risk and time‐inconsistent preferences

AbstractThis paper analyzes a firm's investment timing and capacity decision by considering the manager's time‐inconsistent preferences and continuous economic depreciation of the capital stock cannot be completely offset. The demand shock of the underlying product evolves according to a double exponential jump‐diffusion process. Within a real options framework, we derive the explicit expressions for the optimal investment threshold and investment size when the manager is sophisticated. We find that time‐inconsistent preferences will lead the firm to delay investment when capital depreciation rate is low and accelerate investment when the rate of capital depreciation is high. Further, we show that capital depreciation rate has a monotonic positive effect on the investment size of a time‐consistent manager but a non‐monotonic effect on that of a sophisticated manager. A sophisticated manager tends to choose a smaller investment size than a time‐consistent manager. Finally, we demonstrate that compared with the geometric Brownian motion, the firm invests later with a larger capacity under the jump‐diffusion model.

Commitment, Relational Uncertainty, and the Investment Model

ABSTRACT Based on Rusbult’s investment model and Knobloch and Solomon’s conceptualization of relational uncertainty, this study investigated how uncertainty in romantic relationships affected satisfaction, quality of alternatives, investments, and commitment. 343 adults in romantic relationships completed measures of relational uncertainty, satisfaction, investment size, quality of alternatives, and commitment. Results indicated that relational uncertainty was negatively related to satisfaction, investment, and commitment, and positively related to quality of alternatives. Relational uncertainty moderated the relationship between satisfaction and commitment. The satisfaction-commitment relationship was quite strong at low levels of relational uncertainty, but as relational uncertainty increased the satisfaction-commitment relationship weakened and eventually become nonsignificant.

Cryptocurrency co-investment network: token returns reflect investment patterns

Since the introduction of Bitcoin in 2009, the dramatic and unsteady evolution of the cryptocurrency market has also been driven by large investments by traditional and cryptocurrency-focused hedge funds. Notwithstanding their critical role, our understanding of the relationship between institutional investments and the evolution of the cryptocurrency market has remained limited, also due to the lack of comprehensive data describing investments over time. In this study, we present a quantitative study of cryptocurrency institutional investments based on a dataset collected for 1324 currencies in the period between 2014 and 2022 from Crunchbase, one of the largest platforms gathering business information. We show that the evolution of the cryptocurrency market capitalization is highly correlated with the size of institutional investments, thus confirming their important role. Further, we find that the market is dominated by the presence of a group of prominent investors who tend to specialise by focusing on particular technologies. Finally, studying the co-investment network of currencies that share common investors, we show that assets with shared investors tend to be characterized by similar market behaviour. Our work sheds light on the role played by institutional investors and provides a basis for further research on their influence in the cryptocurrency ecosystem.

Statistical analysis of stable fundamental anomalies in stock pricing on the Russian market

Subject. The article considers stable anomalies in the dynamics of stock prices on the Russian stock market, which are caused by specific characteristics of issuing companies. Objectives. The aim is to perform a cross-sectional analysis of excess returns of stock portfolios reflecting new stable fundamental anomalies of the Russian stock market. Methods. The study employs the data of accounting (financial) statements of issuers. I considered the groups of indicators related to operational efficiency, expectation of slowdown in operational efficiency, threat of insolvency (bankruptcy) of the issuer, and the size of capital investments of issuers. The groups of indicators identified four working hypotheses on consideration of corresponding systematic risk factors in the prices of financial instruments. Analytical procedures were carried out in the RStudio development environment. The sample population covers the period from June 2012 to December 2021. Results. I tested the working hypotheses and formed special portfolios, the excess profitability of which simulates systematic risk factors associated with specific characteristics of issuing companies. The test of risk factors for redundancy, using auxiliary regressions and the Sharpe ratio for various combinations of risk factors, demonstrated that the risk factor associated with operational efficiency of issuers can be considered as redundant, since it is fully explained by other risk factors. The risks of slowing the growth of efficiency and the risk of bankruptcy of the issuer in the Russian stock market are investigated for the first time. Conclusions. The revealed price anomalies contribute to the development of theoretical and empirical prerequisites for factor investment strategies in the Russian stock market. The findings may help investors to increase portfolio strategy’s profitability in the Russian stock market.

Studying the effectiveness of investments in hotel services using customer sentiment analysis

AbstractThe main aim of the article is to assess investments in hotel services in Poland in 2018–2020. The assessment was carried out by examining the correlation between financial outlays in the hotel industry in powiats (counties) and voivodeships of Poland and customer opinions expressed in internet entries on the websites of individual tourist facilities. The methodology for testing the sentiment of text documents is an unsupervised classification algorithm applied to the Polish language. The classification task consists of the unsupervised assignment of a text document to one of three sentiment classes: positive, neutral, or negative. The research is based on opinions collected from 906 hotels and the amount of financial investment in individual hotel segments (categories) in the surveyed years on a powiat basis. Financial investment data were gathered from the official statistical yearbook websites and internet entries were scraped from the websites of individual tourist facilities. The analysis shows a positive relationship between the size of investment in hotel services and the sentiment of customers' opinions. The scientific contribution of the research is threefold. Firstly, an attempt is made to assess the efficiency of investments in hotel services in Poland in recent years. Secondly, the approach applied omits the downsides of other popular models of assessing the quality of services. Thirdly, the algorithm used quite precisely finds the categories required for a different kind or broader analysis of the quality of hotel services.

Investment under Uncertainty: The Role of Inventory Dynamics

Finished-good inventory is very common under market uncertainty. We build a continuous-time model to study how the inventory will impact firm value and investment decisions. Our model shows that the value of a company following the optimal inventory policy can be significantly higher than the traditional non-inventory company, particularly if the inventory-holding cost is not large. This premium becomes small as holding cost is increased, and large when demand is volatile, and when price elasticity is large. We also show that the optimal investment size can be significantly larger than the traditional no-inventory firm, particularly when the inventory-holding cost is low, demand volatility is high, and price elasticity is low. This paper develops a simulation algorithm to solve iterative optimization problem in a path-dependent economy.

Venture Capital's Role in Advancing Plastic Surgery.

Abstract Plastic surgery sector has experienced significant growth, driven by an aging population's demand for minimally invasive procedures and technological innovation. Despite this, the role of venture capital (VC) in driving innovation within this sector remains underexplored. This study aimed to analyze the trends in VC investments in plastic surgery over the last 20 years, providing insights into the financial landscape of the sector. A retrospective cross-sectional analysis was conducted on VC investments in plastic and aesthetic surgery companies worldwide from January 1, 2003 to December 31, 2023, utilizing PitchBook (Seattle, WA). Companies were categorized into therapeutic and thematic areas, with investment trends analyzed by deal and company values, average investment size, and total capital invested. The study found 543 VC firms made 402 investments in 163 companies, totaling $1.98 billion, increasing by 15,143% over the study period, and focused on general plastic surgery and facial cosmetic procedures. Significant investments were also made in surgical software (25.3%), biotechnology and drug discovery (22.8%), and clinic and outpatient services (20.3%). Geographically, most investments were made in companies registered in Asia (45%) and North America (33.2%). VC investments have contributed to the growth and innovation in the plastic surgery sector, particularly in minimally invasive devices. The focus on general and facial cosmetic surgery aligns with market demand trends for aesthetic procedures. These findings underscore the importance of VC in shaping the future of plastic surgery and suggest the potential for strategic investments to further drive innovation. Level of Evidence:5 (Diagnostic)

Regional and analytical aspects of innovation processes in the livestock industry

The aim of the study is to systematize the problems of innovation and technological development of livestock breeding in the region and to determine the guidelines for the development of biological and information technologies, which involves updating the organizational and economic mechanism of agricultural production management and obtaining new competitive products. In the course of the study, the indicators of innovative development of the industry in the Orenburg region were analyzed on the basis of the data of the Territorial Service of State Statistics. In the article the authors summarized the materials of the modern innovative development of the livestock industry in the region and revealed that in recent years there have been positive shifts in the size of investments and costs for research and development of agrarian science in the industry. The study identified the factors that hinder the innovative development of the agro-industrial complex of the Orenburg region. The deficit of own sources of working capital formation was and remains the main problem of aging means of production. The existing level of state support allowed agricultural organizations in the region to increase the average annual level of profitability, but it is important to implement modern science-based systems of innovative transformation of the industry with the transition to a new technological way of life with minimal dependence on the impact of external climatic and biological factors.