Font Size: a A A

Financing In Hi-Tech Firms: The Selection And Re-arrangement Of Contracts

Posted on:2005-07-27Degree:DoctorType:Dissertation
Country:ChinaCandidate:Y Q MaFull Text:PDF
Abstract/Summary:PDF Full Text Request
Starting with characteristics of Hi-tech firms and their financing activities, also based on the analysis of the essential distinction of venture capital and traditional capital, this dissertation researches systematically the financing contract of Hi-tech firms from their coming into being, development to maturity by relevant economic analytical tools, such as Incomplete Contract Theory, etc... The research aims to hold the evolutional route of the financing mechanism during the development of Hi-tech firms, understand financing characteristics and financing mechanism corresponding to different stages, and provide the micro theoretical foundation for financing practices of High-tech firms. This dissertation consists six parts.The first part discusses the whole characteristic of financing activities in Hi-tech firms from their internal specialties, so as to construct the basic research platform for the holistic research.The train of thought of this thesis spreads out as "High technology"——"High-tech firms" ——"Financing in High- tech firms". Since "High technology" is the key to understand the nature of High-tech firms, meanings and characteristics of "High technology" are discussed at the very beginning of this part from "category" side and "kind" side, which form the start to conclude logically that the concurrence of high risk with high return is the financial character of Hi-tech firms as a whole. On the base above, the thesis analyses the nature of Hi-tech firms from two aspects: sectional elements and vertical development. Namely, from the sectional view we could see that technology innovative human capital, management innovative human capital and investment innovative human capital hide at the back of three basic elements: technology, management and capital. While from the vertical view, we could know that the typical route of development of High-tech firms is from producing to coming into the market, during which Hi-tech firms will pass seed stage, start-up stage, grown-up stage and maturity stage. After analyses the characteristics of High technology and High-tech firms, whole characteristics of financing activities in High-tech firms are summarized at the end of this part. The second part pays more attention to probe into the nature of venture capital and Incomplete Contract Theory. The former constructs the important theoretical footstone for this dissertation, and the latter turns into the main analytical tool for this research.The venture capital connects High-tech firms with risk investors, undoubtedly thorough comprehension to the nature of the venture capital would become the breakthrough point and "gold key" to the understanding of the financing mechanism of High-tech firms. The essence of capital lies in chasing interests, naturally analyzing the nature of venture capital should begin with factors which influence its return and functional mechanism of those factors. Generally and then specially, simply and then complicatedly, the author spreads out his research as followings: "Decision of the investment and return in perfect market——Decision of investment and return in imperfect market——Formation of investment and return in venture capital market". According to Portfolio Theory and Capital Assets Pricing Model, the author probes into the mechanism of capital and return based on the analyses about investors' decision-making ability and risk preference and the influence of market condition to investment and return, so as to get to know the nature of venture capital. The study indicates that the venture capital is a kind of complex capital combining financial capital, human capital with reputation capital. Compared with traditional capital, venture capital's greater return comes from risk investors' human capital.How to choose analytical tools is decided by the characteristic of research object, and by the explanation ability of the tool itself. The reasons why the author chooses the Incomplete Contract Theory as the main analytical tool are as following:...
Keywords/Search Tags:Hi-Tech Firms, Financing Contract, Incomplete Contract, Venture Capital, Human Capital, Initial Arrangement and Re-arrangement
PDF Full Text Request
Related items