Corporate venture capital and the returns to acquiring portfolio companies☆

Venture capitalists' decision to withdraw: The role of portfolio configuration from a real options lens

“…Fifth, VCs are less likely to withdraw from projects to which they have already disbursed larger total amounts of investment (VC's total investment in venture). Finally, consistent with prior research in the corporate venture capital context (Benson and Ziedonis, 2010), when a VC has provided more Venture Capitalists' Decision to Withdraw: The Role of Portfolio Configuration From a Real Options Lens. Strategic Management Journal.…”

Simulations of p‐tert‐Butylcalix[4]arene with Multiple Occupancies of Small Guest Molecules

“…For example, AOL's acquisition of prior alliance partner BEBO resulted in a subsequent divestiture at a loss of more than $ 1 billion (Helft, 2010). Consistent with this example, Benson and Ziedonis (2010) found that outright acquisitions may outperform acquisitions of alliance partners, and Zaheer et al (2010) failed to find a positive main effect of acquisition of prior alliance partners relative to outright acquisitions. Therefore, it is important to understand how the information flow mechanisms highlighted in the organizational design literature, namely resource allocation decisions and direct communication (Galbraith, 1973; Noda and Bower, 1996), may address behavioral uncertainty and influence divisional managers' inferences regarding coordination and appropriation costs (Gulati and Singh, 1998).…”

“…For example, Higgins and Rodriguez (2006) study 160 pharmaceutical acquisitions, of which 28 percent had prior alliances, and report a positive effect of prior alliances on market reaction to acquisition announcements. However, Benson and Ziedonis (2010) study 530 acquisitions by 61 top investors and report a negative effect of prior corporate venture capital investments on market returns at the time of announcement. Zaheer et al (2010) find no main effects of prior alliances on post‐acquisition performance, but do find that international alliances or alliances with strong ties result in superior post‐acquisition performance.…”

“…For example, when one firm acquires another, there are numerous challenges in achieving coordination of activities between the acquired and acquiring entities (Anand and Singh, 1997; Birkinshaw, Bresman, and Hakanson, 2000; Graebner, 2004; Karim and Mitchell, 2000; Puranam, Singh, and Zollo, 2006). Scholars have noted that a key source of heterogeneity in acquisitions relates to whether the acquired entity was a prior alliance partner (Benson and Ziedonis, 2010; Dyer, Kale, and Singh, 2004; Higgins and Rodriguez, 2006; Vassolo, Anand, and Folta, 2004; Zaheer, Hernandez, and Banerjee, 2010). Thus, post‐acquisition settings provide a rich context within which we can examine the effects of behavioral uncertainty on coordination.…”

When Stars Shine: The Effects of Faculty Founders on New Technology Ventures

“…The largest VCs were selected by total dollars invested, as reported by Forbes Magazine with data from Venture Economics . The investment of corporate venture capital has also been shown to have a signal effect on the marketplace (Benson and Ziedonis, ; Wadhwa and Kotha, ). We add an indicator variable (set to 1) if an incumbent firm has invested in the firm ( Corporate VC Invested )…”