Biotechnology firms, signals, and venture capital investment

IF 1 Q4 MANAGEMENT

Intangible Capital Pub Date : 2022-10-14 DOI:10.3926/ic.1978

Ernest Solé Udina, Susana Domingo-Perez, Oriol Amat

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引用次数: 0

Abstract

Purpose: Biotechnology has gained such prominence that approximately 50% of the new drugs developed in the world are of biotechnological origin. Some of the Covid-19 vaccines are a good example of this. The biotechnology R&D projects are characterized by high costs, prolonged development times, and a high degree of uncertainty and failure. Few types of financial agents undertake such a risky investment: venture capital firms invest in high-tech, high-risk companies. In this paper, we analyze the signals that influence venture capital investment decisions.Design/methodology/approach: Hypotheses about the effectiveness of these signals are validated by means of a probit regression with panel data on a sample of 210 biotechnology companies established in Spain over a ten-year period.Findings: Positive and negative signalling effect has been found for some of the phenomena analysed, which validate the proposed model.Research limitations/implications: A convenience sample has been used for methodological reasons, and some phenomena that could have some effect on the venture capital investment decisions have not been possible to observe, due to the lack of available data.Practical implications: It can be crucial for biotechnology firms that their managers know which characteristics make these firms attractive to venture capital firms. Additionally, it is important to know those signals that, instead of favouring this investment, deter it.Originality/value: The focus on the first venture capital investment -instead of the most usual focus on the amount invested- as an event that mitigates the information asymmetry level, the use of a probit regression with panel data, and such a quantitative analysis on the Spanish biotech industry, never done before, highlight the originality of this work.

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生物技术公司、信号和风险投资

目的:生物技术已获得如此突出，世界上开发的新药中约有50%是生物技术来源。一些Covid-19疫苗就是一个很好的例子。生物技术研发项目具有成本高、开发时间长、不确定性和失败率高等特点。很少有金融机构承担这样的高风险投资:风险投资公司投资于高科技、高风险的公司。本文分析了影响风险投资决策的信号。设计/方法/方法:通过对西班牙210家生物技术公司样本的面板数据进行probit回归，对这些信号有效性的假设进行了验证。研究结果:在分析的一些现象中发现了积极和消极的信号效应，这验证了所提出的模型。研究限制/影响:由于方法上的原因，使用了一个方便的样本，由于缺乏可用的数据，一些可能对风险资本投资决策有一定影响的现象无法观察到。实际意义:对于生物技术公司来说，他们的经理知道哪些特征使这些公司对风险投资公司有吸引力是至关重要的。此外，重要的是要知道那些信号，而不是支持这种投资，阻止它。原创性/价值:对第一次风险资本投资的关注——而不是最常见的对投资金额的关注——作为减轻信息不对称水平的事件，对面板数据的probit回归的使用，以及对西班牙生物技术产业的这种定量分析，以前从未做过，突出了这项工作的原创性。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Intangible Capital MANAGEMENT-

CiteScore

1.50

自引率

16.70%

发文量

审稿时长

33 weeks

期刊介绍： The aim of Intangible Capital is to publish theoretical and empirical articles that contribute to contrast, extend and build theories that contribute to advance our understanding of phenomena related with management, and the management of intangibles, in organizations, from the perspectives of strategic management, human resource management, psychology, education, IT, supply chain management and accounting. The scientific research in management is grounded on theories developed from perspectives taken from a diversity of social sciences. Intangible Capital is open to publish articles that, from sociology, psychology, economics and industrial organization contribute to the scientific development of management and organizational science. Intangible Capital publishes scholar articles that contribute to contrast existing theories, or to build new theoretical approaches. The contributions can adopt confirmatory (quantitative) or explanatory (mainly qualitative) methodological approaches. Theoretical essays that enhance the building or extension of theoretical approaches are also welcome. Intangible Capital selects the articles to be published with a double bind, peer review system, following the practices of good scholarly journals. Intangible Capital publishes three regular issues per year following an open access policy. On-line publication allows to reduce publishing costs, and to make more agile the process of reviewing and edition. Intangible Capital defends that open access publishing fosters the advance of scientific knowledge, making it available to everyone. Intangible Capital publishes articles in English, Spanish and Catalan.