Assessment of Overseas Subsidiary Survival in Chinese Provinces: A Longitudinal Study of Indian Multinationals

Das, Khanindra Ch.; Mahalik, Mantu Kumar

doi:10.1111/1467-8462.12404

Cited by 1 publication

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References 62 publications

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“…The model (Cox, 1972) describes the probability of an event's occurrence (acquisition in this case) conditional on other variables. Hazard function has been used in a variety of contexts (Cole & Sokolyk, 2018;Das & Mahalik, 2021;Giovannetti et al, 2017;Kalyanasundaram et al, 2021;Khan & Awan, 2020). The hazard function is used to determine the probability that a startup is being acquired given that it has survived up to time t. The hazard function h i (t) of startup i is expressed as…”

Section: Robustness Checkmentioning

confidence: 99%

What Affects Startup Acquisition in Emerging Economy? Evidence from India

Das

2023

Journal of Emerging Market Finance

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Acquisitions of startup concern investors, cofounders, consumers, and competition watchdogs. With the rapid emergence of the startup ecosystem in India, the phenomenon of startup acquisitions has become noteworthy. In this article, startup exit through acquisition is examined using startup-specific data relating to funding, funding rounds, cofounders, brand name length, and gender of the cofounder. Startup exit is modelled through choice models on a sample of 903 startups. Cox proportional hazard regression was used for the robustness check. The results suggest that venture capital funding increases the probability of acquisition. However, the number of funding rounds reduced the likelihood of acquisition significantly indicating that repeat funding has a positive impact on new venture continuity. There is a trade-off between the quantity and consistency of venture capital funding in affecting the likelihood of acquisition. The number of cofounders is associated with higher acquisition likelihood, and the brand name length had a negative impact on the probability of acquisition. Furthermore, there is a lower acquisition likelihood if the startup had a female cofounder. The findings bear implications for the quality of fundraising, startup team formation, branding, and women entrepreneurship. JEL Codes: G24, G34

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