JOURNAL ARTICLE

Venture Capital Investments, Merger Activity, and Competition Laws around the World.

  • Published In: Review of Corporate Finance Studies, 2024, v. 13, n. 2. P. 303 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Phillips, Gordon M; Zhdanov, Alexei 3 of 3

Abstract

This article investigates the relationship between venture capital (VC) investments, merger and acquisition (M&A) activity, and merger competition laws across 45 countries from 1985 to 2018. It finds a strong positive association between lagged M&A activity and subsequent VC investments, suggesting that active M&A markets provide viable exit opportunities that incentivize venture capitalists to invest. The study further shows that stricter country-level merger competition laws correlate with reduced VC activity, while the enactment of pro-takeover legislation leads to significant increases in VC investments. These findings highlight the importance of M&A market dynamics and legal frameworks in shaping venture capital activity, entrepreneurship, and economic growth internationally.

Additional Information

  • Source:Review of Corporate Finance Studies. 2024/05, Vol. 13, Issue 2, p303
  • Document Type:Article
  • Subject Area:Business and Management
  • Publication Date:2024
  • ISSN:2046-9128
  • DOI:10.1093/rcfs/cfad025
  • Accession Number:176631201
  • Copyright Statement:Copyright of Review of Corporate Finance Studies is the property of Oxford University Press / USA and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

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