Trade Sales Research Articles

Differentiating between successful VC exit strategies: The influences of time-since-first-funding-received by the venture and strength of US VCs in cross-border syndicates

In this study, we argue that successful exit outcomes (Trade Sales (TS) or IPO) from VCs' cross-border investments are influenced by time-since-first-funding-received (TSFFR) by the venture. As TSFFR increases, the venture reveals more information about its potential, influencing the value that trade and IPO buyers place on it. This, in turn, influences whether VCs exit via a TS or an IPO. Analyzing 1841 cross-border of UC fund-venture pairs, our findings suggest that TSFFR has an inverted-U-shaped association with the probability of TS. The strength of the US VCs in the cross-border syndicate interacts with this association, reducing the probability of TS exit for lower levels of TSFFR and increasing it for higher levels.

Private Equity Exits in the CEE:

Purpose of the article: The purpose of this article is to assess private equity exit strategies of CEE portfolio companies with regards to desired exit routes, including a cross-border deal aspect and a pre-exit holding period.Methodology/methods: This paper employs secondary data from the Mergermarket database containing information on more than 20 thousand private equity M&A deals and IPOs. General scientific methods such as analysis, comparison or generalization were used.Scientific aim: Only limited amount of research was carried out on the private equity exits in the region of central and eastern Europe. This study aims at shedding new light on understanding of private equity exit route decisions and timing in this particular geographic area.Findings: Exiting a CEE portfolio company, private equity investors tend to prefer exiting via trade sales over secondary buyouts or IPOs. They also tend to prefer foreign acquirers over domestic ones. A typical pre-exit holding period averages around 5 years.Conclusions: Our results show that while exiting a CEE portfolio company, private equity investors tend to divest by selling the company to a strategic investor (trade sales) rather than a financial investor (secondary buyouts) or exiting via an IPO. While exiting via trade sales and secondary buyouts, private equity investors tend to prefer foreign acquirers rather than domestic ones with a strong preference of acquirers from outside of the respective region. Typical holding period of a CEE private equity portfolio company remains on average in line with academic theory. Our paper contributes to the developing literature of private equity by using an extended and up to date dataset and introducing the research on the cross-border aspect of PE exit strategies.

Making Markets Through Coalitions: The European Union and the Debate Over Ukraine's National Resources

AbstractThis article studies how the European Union (EU) influences the dynamics between supporters and opponents of market liberalization in partner countries. We focus on Ukraine's attempts to safeguard timber trade and agricultural land sales from international markets through moratoria before 2022. We find that the EU intervenes in domestic debates both directly and through domestic pro‐market coalitions to frame these moratoria as expressions of ‘vested interests’ and instances of state weakness. The EU effectively linked the free trade argument with protecting the environment (as the moratorium tolerated illegal logging) and human rights (as the land moratorium denied landowners their property rights). The EU thus fostered discourses and coalitions prioritizing liberalization over protectionist interests and environmental concerns. This article implies that the EU should encourage debates around market liberalization rather than de‐legitimize opponents, as reconstruction in Ukraine following Russian aggression will require both EU assistance and broader internal coalitions.

Outward foreign direct investment operation modes and reverse technology spillovers: Implications for the quality of economic growth

This study delves into the nuanced relationship between China's outward foreign direct investment (OFDI) and the enhancement of economic growth quality, with a focus on the reverse technology spillover effect. Our findings reveal that OFDI contributes significantly to the efficiency and sustainability of economic growth. Notably, we observe a time-lag effect in the positive impact on growth quality, indicating a delayed manifestation of reverse technology spillovers. Furthermore, heterogeneity analysis suggests that OFDI in high-economic-level host countries, by firms with fewer branches and those in trade sales, enhances the quality, efficiency, and sustainability of China's economic growth, albeit with limited stability impact. Additionally, we uncover a mediating effect wherein OFDI-induced scale expansion elevates domestic human capital levels and research and development intensity, narrows the technology gap, and substantially increases the quality of China's economic growth. This research not only sheds light on the strategic value of China's OFDI in global economic dynamics, but also offers actionable insights for policymakers and businesses to harness OFDI for sustainable and quality-driven economic advancement.

Fight for Customers - Correlations of Trade Organizations and Sales Promotionon the Hungarian FMCG Market

Tract of time after the millennial brought well definable changes in retailers’ trade organizations and marketing activity in the Hungarian three-pole FMCG market. Operation conditions of enterprises became more complicated which is also reflected in the variability of the number and intensity of relevant influencing factors as well as in the difficulties of forecasting them. Out of these the change of consumer/purchase behaviour, the growth of competition intensity, the swell of procurement marketing, changes in channel position, the innovation of informatics and info communication tools, the dominant change of economic environment, the stiffening legislation and the unexpected influence of ecological environment can be highlighted. An important starting point for exploring the impact of the changes focusing on market competition is that the number and activity of chain stores operating in Hungary has stabilized, which has shifted the direction of research to explore the relationship between trade organization and marketing, improving competitive advantages and management efficiency.JEL Code: M31

Fight for Customers - Correlations of Trade Organizations and Sales Promotionon the Hungarian FMCG Market

Tract of time after the millennial brought well definable changes in retailers’ trade organizations and marketing activity in the Hungarian three-pole FMCG market. Operation conditions of enterprises became more complicated which is also reflected in the variability of the number and intensity of relevant influencing factors as well as in the difficulties of forecasting them. Out of these the change of consumer/purchase behaviour, the growth of competition intensity, the swell of procurement marketing, changes in channel position, the innovation of informatics and info communication tools, the dominant change of economic environment, the stiffening legislation and the unexpected influence of ecological environment can be highlighted. An important starting point for exploring the impact of the changes focusing on market competition is that the number and activity of chain stores operating in Hungary has stabilized, which has shifted the direction of research to explore the relationship between trade organization and marketing, improving competitive advantages and management efficiency.JEL Code: M31

INTEGRATED MARKETING COMMUNICATION (IMC) STRATEGIES AT SHARIA SYAFAAT MARCOMM DIGITAL AGENCY IN YOGYAKARTA IN 2021

Integrated Marketing Communicationplay a key role in managing marketing strategies. IMC itself focuses on marketing its product, services and facilities to gain good public opinion and maintance a positive image.the purpose of this study is to describe the work system of IMC at sharia Syafaat Marcomm Digital Agency itself. The constructivist paradigm is the mainstay of this research because the truth of reality which is seen as a result of social construction and the truth of realyty are relative. This is support by a target sampling technique, namely looking for relevant informants such as directors and general managers to ensure the data obtained are valid. This study use qualitative research, which describes the problem under study obtained through interviews with interview tehniques, observation and collection of documentation. Syafaat Marcomm uses IMC such as advertising, Consumer Sales Promotion, Trade Sales Promotion, Public Relation, and Publications, Sponsorship and Event, Direct Marketing in serving clients and applaying to clients. In accordance with thw vision and mission of improving product quality and quality to develop following technological civilization and becoming a creative company in every information technology service.

Borderland Economic Resilience under COVID-19: Evidence from China-Russia Border Regions.

The COVID-19 pandemic has had a great impact on the global economy and trade, and border regions have been hit severely because of their high dependency on foreign trade. To understand better the economic impact of COVID-19 on border regions, we developed a COVID-19 economic resilience analytical framework and empirically examined 10 Chinese-Russian border cities in Northeast China. We quantitatively analyzed five dimensions of economic resilience, distinguished four types of shock, and examined the determinants of economic resilience. The results show that: (1) the COVID-19 pandemic has wide-ranging impacts in the border areas, with import–export trade and retail sales of consumer goods being the most vulnerable and sensitive to the shock. The whole economy of the border areas is in the downward stage of the resistance period; (2) from a multi-dimensional perspective, foreign trade and consumption are the most vulnerable components of the borderland economic system, while industrial resilience and income resilience have improved against the trend, showing that they have good crisis resistance; (3) borderland economic resilience is a spatially heterogeneous phenomenon, with each border city showing different characteristics; (4) economic openness, fiscal expenditure, and asset investment are the key drivers of economic resilience, and the interaction between the influencing factors presents a nonlinear and bi-factor enhancement of them. The findings shed light on how border economies can respond to COVID-19, and how they are useful in formulating policies to respond to the crisis.

Faktor-Faktor yang Mempengaruhi Harga Saham pada Industri Retail Trade and Whole Sale

This study is performed to examine the effect of Current Ratio (CR), Debt To Equity Ratio (DER), Total Asset Turnover (TATO), Return On Equity (ROE) and Earning per Share (EPS) toward stock price on Retail trade and whole sale that is listed on the Indonesian Stock Exchange from 2009 to 2012. Sampling technique used here is purposive sampling to obtain samples in accordance with predeterminan criteria. Method of data analysis used is the multiple linear regression analysis, hypothesis test using f-statistic to examine the mean of mutual, t-statistic to examine partial and test the coefficient of determination. Data processing was carried out using SPSS 16.0. In addition, classical assumption is also performed including normality test, multicolinearity test, autocorrelation test and heteroscedasticity test.

Real estate as an element of the so-called pharmaceutical enterprise

De lege lata running pharmacies is a special type of economic activity. On the one hand, a pharmacy is a public healthcare institution (Art. 86 (1) of the Act of 6 September 2001 - Pharmaceutical Law), and the activities undertaken in it have a fundamental impact on the basic values, i.e. human life and health. On the other hand, an entrepreneur running a pharmacy (the so-called pharmaceutical entrepreneur) is an economic entity, which operates on a competitive market and desires to make a profit. Due to the protection of public health, the activity of running pharmacies (the so-called pharmaceutical activity) is a subject to numerous restrictions resulting from the regulations of the broadly understood pharmaceutical law. The pharmaceutical entrepreneur does not fully use the freedom of economic activity. An interesting example of such restriction is the detailed regulation of the conditions to be met by real estate included in the so-called pharmaceutical enterprise, constituting a generally accessible pharmacy. In current legal status, a pharmacy may be operated only in a premises specially prepared for this purpose, meeting the requirements set out in Art. 97 of the Pharmaceutical Law, as well as in the implementing acts to this provision, i.e. in the regulation of the Minister of Health of 26 September 2002 on the list of rooms included in the primary and auxiliary areas of a pharmacy and the regulation of the Minister of Health of 30 September 2002 on detailed requirements with which the pharmacy premises should correspond. This real estate includes a primary area and an auxiliary area. From the point of view of health protection, the most important room included in the primary area is the expeditionary chamber, within which access should be provided for disabled people. The auxiliary area of the pharmacy premises includes technical and social facilities for the pharmacy. If a pharmacy entrepreneur conducts the sale by mail order of medicinal products, it is also necessary to separate out a place in the pharmacy’s premises for the preparation of goods for shipment. Due to the wide catalog of the so-called pharmacy activities involving various types of activity, e.g. trade (sale of medicinal products and other goods), manufacturing (preparation of medication) and service (pharmaceutical services, pharmaceutical care), de lege ferenda it seems necessary to distinguish in the premises of the pharmacy, the room ensuring respect for the intimacy and dignity of the patient during providing health care services.

Epizootic Situation of Brucellosis of Domestic Northern Reindeer in the Republic of Sakha (Yakutia)

Brucellosis is a highly contagious zooanthroponotic disease. Epizootics of brucellosis etiology registered in the regions of Yakutia significantly reduce the efficiency of reindeer husbandry. In most cases, brucellosis in animals manifests itself chronically for several years, which makes it difficult to eliminate this infection in the conditions of reindeer farms and contributes to the formation of persistent, epizootic active foci. Brucellosis has not only social significance, but also serves as a potential barrier to trade (sale and exchange) of animals, products and products of animal origin, and prevents breeding. The article provides data on the epizootic situation of brucellosis in domestic reindeer in the Republic of Sakha (Yakutia). The data on the livestock and research on brucellosis of northern domestic reindeer in Yakutia are presented.

КЛЮЧОВІ ФАКТИ ГАРМОНІЗАЦІЇ ЦИФРОВОЇ ТОРГІВЛІ УКРАЇНИ

In the conditions of digitization of the world economy, there is a need for the development the digital trade. The work reveals the facts about Ukrainian’s digital trade. Ukraine faces a lot of tasks related to the development of digital trade, which is why many works devoted to this issue have appeared in recent years. Despite the significant contribution of the scientific works described above, the current state of development of digital trade in Ukraine has not been finally resolved. Therefore, the author considers it expedient to conduct an analysis of the digital trade market in Ukraine. The purpose of the study is to reveal the peculiarities and facts of Ukraine's digital trade and to find ways to harmonize the digital environment between Ukraine and the EU. The landscape of consumers was studied and their characteristics were carried out by analyzing the dynamics of indicators of digital trade users in developed countries in comparison with Ukraine. The behavioral situation of Internet shopping is characterized by analyzing the current state of digital commerce penetration and the level of Internet penetration. Key aspects of Ukraine's digital trade are revealed in the work. The study analyzed the dynamics of net sales of digital trade among the 100 best online stores in Ukraine. The paper examines the net volume of digital trade sales among the 100 best online stores in Ukraine. Based on the above analysis of international experience, the author proposed ways to harmonize digital trade between Ukraine and developed countries. The work concluded that for the harmonization of digital trade between Ukraine and developed countries, it is necessary to practice the organization and implementation of digital trade, if the territory of the ecosystem functions similarly to the digital trade of the world, then this will be a guarantee of the development of digital trade on global markets. The implementation of harmonization of digital trade will remove obstacles to cross-border digital trade, increase the volume of cross-border digital trade and prepare the country for future changes in digital trade in global markets.

ПРИНЦИПИ ВИКОНАННЯ ЗОВНІШНЬОЕКОНОМІЧНИХ ОПЕРАЦІЙ ТА КОНТРАКТІВ

In the context of complex political and socio-economic processes, that are characterized by the stratification of the property status of various segments of the population, by the growth of customs offenses, by the aggravation of the influence of destabilizing trends on the economic security of the state, the issue of creating an effective state system of customs and legal regulation of foreign economic activity of business entities becomes relevant. The variety of nomenclature of goods transported across the customs border, and the peculiarities of foreign economic operations determines the implementation of customs and legal regulation by a large number of state authorities, each of which, within the limits of their competence, is entitled to issue normative documents in the field of foreign economic activity and provide permits for foreign trade operations. The fulfillment of a foreign trade obligation is subject to both the terms of the agreement and the provisions of the normative sources of international trade law, and the customs of commercial turnover. Among the customs produced by many years of experience in international trade, the customs are distinguished, which have become general provisions, which in the civil doctrine are called the principles of fulfilling obligations. When drawing up an agreement, it is important to establish which state law will govern relations under a specific agreement, since there are significant differences in resolving the same issues in the law of different countries. The foreign trade sale and purchase agreement is the most common legal form of foreign economic agreement, which mediates the relationship between Ukrainian and foreign entrepreneurs. Its development in accordance with the principles of implementation, the development of conditions and obligations of the parties, the implementation requires special knowledge and skills, taking into account the specific features of the external market.

Initial impact assessment of Covid-19 on retailing: Changing consumer behaviour and retail trade sales

Initial impact assessment of Covid-19 on retailing: Changing consumer behaviour and retail trade sales

An Empirical Study on the Digital Trade Status of Small and Medium-Sized Businesses in Korea: A Focus on the Top 5 Promising Consumer Goods

Purpose - With the digitalization of trade becoming a hot topic again in the international trade sector, this study aimed to present policy implications for expanding digital trade by exploring the current status of Korean small and medium-sized enterprises (SMEs). Design/Methodology/Approach - Based on a literature review and available statistical data, the trend of global trade digitalization was theoretically considered. On the other hand, the current status of digital trade was analyzed empirically based on a survey of Korean SMEs. Findings - Digitalization of trade brings an opportunity for small and medium-sized companies, relatively weak in competitiveness, such as lack of information on overseas market and inferiority in overseas marketing capabilities. Specifically, the empirical analysis shows that companies have extensive experience in digital trade and online domestic sales in Korea and transaction experience through B2C online platforms account for a higher share of total sales or exports than companies with low digital readiness. Research Implications - First, continuous policy attention and efforts are needed to build a digital trade environment so that SMEs can naturally become accustomed to digital trade. Second, the government’s digital export support programs targeting SMEs should ultimately be centered on B2B transactions. Finally, intelligent digital export support programs are required by items suitable for digital trade through the integrated management of the transaction and transaction history of the export promotion agencies.

Type of Successful Cross-Border VC Exit: The Influence of Venture Age, US VCs, and Market Potential

We investigate the influence of venture age, influence of US VCs in syndicates, and market potential on the type of successful VC exit (trade sale and IPO) from cross-border venture investments. We theorize that VCs’ exit behavior would be motivated by returns from a specific exit as well as longer term benefits from the exit via accretion to their reputation, which leads to improved deal flow and lower search costs in the future. We also investigate how US VCs’ strength in the syndicate and market potential of the region influences venture timing and the exit type. We test our hypotheses in a sample of 995 exits outside the US by VC syndicates with US VCs as one of the partners. Our analysis controls for a variety of country, VC firm, VC fund, and portfolio firm (venture) level influences, as well as tests for potential selection bias. We find that venture age has a positive effect on the choice of TS as an exit option over IPO. Further, the strength of the US VC firms in the syndicate moderates this relationship toward favoring an IPO exit. Finally, we find support for the notion that VCs are more willing to wait for an IPO exit in fast-growing and high potential Asia Pacific region to build their reputation in the market than in the mature and slow-growth European market.

COVID-19 and Global Beverage Markets: Implications for Wine

AbstractThis article provides an empirical case study of the impacts of the COVID-19 pandemic on global beverage markets, particularly the wine sector. Both international trade and domestic sales have been adversely affected by temporary shifts away from on-premise sales by social distancing measures and self-isolation that led to the closure of restaurants, bars, and clubs, plus declines in international travel and tourism. Partly offsetting this has been a boost to off-premise and direct e-commerce sales. We first estimate those impacts in 2020 and their expected partial recovery in 2021 using a new model of global beverage markets. Further recent disruption to the global wine trade has been the imposition by China in late 2020 of prohibitive tariffs on its imports of bottled wine from Australia. Its diversionary and trade-reducing effects are compared with those due to COVID-19. (JEL Classifications: C63, D12, F14, F17, Q17)

Enablers of exit through trade sale: the case of early-stage research-based spin-offs

A significant share of new technology-based ventures exit through trade sale at an early stage of firm development. While trade sale is an important exit route for entrepreneurs and investors, and a potential source of new innovations and technology for acquiring firms, we have limited knowledge about the factors that help to effectively achieve a trade sale. We employ a unique dataset tracking the population of research-based spin-offs in Norway and conduct in-depth case studies of nine trade sales. Building on 52 interviews and other secondary data, we inductively develop propositions outlining three dimensions that lead to a successful trade sale—potential synergies, credible alternatives, and uncertainty reduction. We show that these enablers of trade sales are not only linked to the focal venture but also related to the idiosyncratic dyad with the buyer, reflecting both the potential for and likelihood of trade sale. Consequently, our study contributes to the literatures on entrepreneurial exit and academic entrepreneurship by mapping the important but under-explored area of trade sale as an exit mode.Plain English SummaryPotential synergies and credible alternatives increase the potential of a research-based spin-offs’ trade sale, but the likelihood of a trade sale depends on how uncertainty reduction is managed. A trade sale is an important exit route for entrepreneurs and investors, and a potential source of new innovations and technology for acquiring firms. Research-based spin-offs are often acquired during their early stages of development by large corporations. We track the population of Norwegian research-based spin-offs and study nine trade sales in depth. Our findings concerning the importance of synergy potential, credible alternatives, and uncertainty reduction have implications for both academic entrepreneurs and potential buyers for how they can complete an exit through trade sale. Since scientific research is critical for society, our findings have implications for policymakers in the form of interesting ideas for influencing trade sales, a potentially important route for commercialization of scientific research.

VC fund preferences and exits of individual investors

The venture capital (VC) preferences and exits of individual investors have been a puzzle in emerging markets. Using a large dataset of limited partners (LPs) and VC funds in China, we find that compared with corporate and institutional LPs, individual LPs in the VC market prefer funds managed by reputable VCs, fund managers with prior experience as venture capitalists, non-government VCs, and funds with less concentrated ownership. Moreover, we find that funds with individual LPs have a greater number of exits via IPO and trade sales, and funds with individual LPs managed by reputable VCs have better exit returns. Our results further suggest that funds with individual LPs have shorter time to exit. These findings hold after controlling for different fixed effects and endogeneity issues. Collectively, our findings suggest that individual LPs seek fund characteristics known to help mitigate agency costs. Our paper sheds lights on the investment preferences of individual LPs and the impact of LP structure on VC fund exits.

Venture Capital-Backed Firms, Unavoidable Value-Destroying Trade Sales, and Fair Value Protections

This paper investigates the implications of the fair value protections contemplated by the standard corporate contract (i.e., the standard contract form for which corporate law provides) for the entrepreneur–venture capitalist relationship, focusing, in particular, on unavoidable value-destroying trade sales. First, it demonstrates that the typical entrepreneur–venture capitalist contract does institutionalize the venture capitalist’s liquidity needs, allowing, under some circumstances, for counterintuitive instances of contractually-compliant value destruction. Unavoidable value-destroying trade sales are the most tangible example. Next, it argues that fair value protections can prevent the entrepreneur and venture capitalist from allocating the value that these transactions generate as they would want. Then, it shows that the reality of venture capital-backed firms calls for a process of adaptation of the standard corporate contract that has one major step in the deactivation or re-shaping of fair value protections. Finally, it argues that a standard corporate contract aiming to promote social welfare through venture capital should feature flexible fair value protections.