Date of Award
5-2021
Degree Type
Report
Degree Name
Master of Science (MS)
Department
Economics and Finance
Committee Chair(s)
Benjamin Blau (Committee Chair)
Committee
Benjamin Blau
Committee
Frank Caliendo
Committee
Ryan Whitby
Abstract
This paper examines the stock price reaction to the addition of corporate venture capital arms to publicly traded companies. Referencing venture capital resources, corporate press release announcements of the addition of CVC arms were hand collected. I calculate the cumulative abnormal returns (CARs) surrounding press release announcement dates and find immediate stock market reactions, positively increasing stock prices compared to the overall market. I further perform placebo event studies at random dates and with direct competitors using the same announcement dates and find no significant results. These findings suggest that corporate venture capital increases company valuation and that financial markets positively value corporate venture capital arms.
Recommended Citation
Lyman, Joshua, "Corporate Venture Capital and Its Effects on Company Valuation - An Analysis of the Additions of CVC Arms" (2021). All Graduate Plan B and other Reports, Spring 1920 to Spring 2023. 1554.
https://digitalcommons.usu.edu/gradreports/1554
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