What drives venture capital fund performance?

Gihyun Kwak

Applied Economics Letters, 2020, vol. 27, issue 13, 1096-1101

Abstract: This study analyses the determinants of the return on Korean venture capital (VC) funds in terms of fund management strategies. In particular, I adopt the quantile regression analysis to identify the heterogeneous effect of a strategy based on the performance level of a fund. As a result of the analysis, it has been shown that to achieve high performance, it is necessary to use instruments to deal with the uncertainty of investment targets and information asymmetry such as stepwise investment, use of conversion securities, syndication. In addition, for very high performance, it is necessary to focus on a certain industry and to include a few companies in the portfolio with large investment. As well, in order to achieve high returns, investing large amount in a small number of portfolios is confirmed to be valid strategy.

Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13504851.2019.1667475 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:27:y:2020:i:13:p:1096-1101

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/13504851.2019.1667475

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().