Korean Venture Firms' Sources of Capital

Sohyun Ahn ()
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Sohyun Ahn: Korea Institute for Industrial Economics and Trade, Postal: Sejong National Research Complex, Korea Institute for Industrial Economics and Trade, 370 Sicheong Dae-ro C-dong 8-12F 30147, Republic of Korea, http://www.kiet.re.kr

No 23-8, Industrial Economic Review from Korea Institute for Industrial Economics and Trade

Abstract: Financing decisions are some of the most important decisions firms make. Many scholars have focused on studying the mechanism behind these decisions, and comparing the outcomes of different sources of capital. Studies have found that firms’ financial decisions interact with other business decisions, such as investment decisions. Moreover, different sources of capital affect other players in the market differently, through which firms’ financing decisions affect the overall structure of the economy. This article examines the relationship between financing and other firm characteristics to shed light on firms’ strategies and performance in Korea. Korean venture firms’ unique characteristics may affect their business strategies and performance. In this article, I analyze the characteristic of venture firms by focusing on their financing decisions. Specifically, I categorize and define venture firms by the sources of capital utilized and compare their characteristics and performance using survey data from 2021. Keywords: venture firms, venture capital, venture financing, small and medium-sized enterprises, SMEs, capital financing, financing decisions, equity financing, debt financing, imperfect information, imformation asymmetry, angel investment, Korea, innovation policy

Keywords: venture firms; venture capital; venture financing; small and medium-sized enterprises; SMEs; capital financing; financing decisions; equity financing; debt financing; imperfect information; imformation asymmetry; angel investment; Korea; innovation policy (search for similar items in EconPapers)
JEL-codes: D81 D83 L25 O30 O31 O38 R11 R12 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2023-04-30
New Economics Papers: this item is included in nep-cfn, nep-cse, nep-mac and nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:ris:kieter:2023_008

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