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Research On Distribution Of Ownership And Control Right In Venture Enterprise And Decision-making Of Investment By Stages

Posted on:2004-08-11Degree:MasterType:Thesis
Country:ChinaCandidate:Y ChenFull Text:PDF
GTID:2156360095456845Subject:Technical Economics and Management
Abstract/Summary:PDF Full Text Request
Twenty-first century is experiencing one of the fastest paces of high technology development. High technology will play a key role in industrial structure adjusting and economic growth.Developments of high-tech and related industries have become a strategic objective in a nation's economic growth planning. China, as a developing country ,feels even more urgent in high-tech development.But due to its nature of high risk and large investments, high technology industry is experiencing difficulty in attracting sizable funds.It has thus become a top priority for developing venture capital business.This paper may be summarized as follows:Firstly, from three aspects of microeconomics, macroeconomics and the operation mechanism of the adventure investment, this paper simply introduces adventure investment.Secondly, with analyzing the adventure investment's moral hazard and the character of the entrepreneur's human capital, this paper generalized the character of venture capital. There is high moral hazard existed in venture investment. By analyzing a principal-agent model we get a conclusion that if venture capitalist supply high quality service for and exert efficient supervise on entrepreneur, the high moral hazard in the venture investment can be avoided by large extent. Because the venture entrepreneur has low credit to assure the investor at beginning, and the potential of his ability has a long time to appear, the main measure of adventure enterprise' governance mechanism is to build incentive, strict supervise and dynamic adjust mechanism for venture capital. For the aspect of ownership and control right' distribution, based on the research of the distributing measure, we build a financing model. With the analysis of this model, this paper point out that the distribution of ownership and the control right are according with what we learned form the modern enterprise theory in which the residual claim right be required to match with the residual control right in nature, but there is difference between them in the form to the venture enterprise coming from the character of venture investment. Thirdly, a research is done on the stage investment in the venture investment andthe re-evaluating value of venture investment based on analyzing the actual performance of the venture enterprise. Then a real option decision model by using the binomial theorem is suggested creatively in this paper. In this model, we take in the fact that if we use the real option model to analyze the decision problem in the stage investment, we must take the real option as a compound option. Further on, the probability of anticipated profit climbing on or coming down may be different in the different stage is also considered by this model.
Keywords/Search Tags:Venture Capital, Financing Model, Real Option Decision Model
PDF Full Text Request
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