2019

A Theory of Gazelle Growth: Competition, Venture Capital Finance and Policy

Reprint No. 2019:55

Author(s): Mehmet Caglar Kaya and Lars PerssonYear: 2019 Title: North American Journal of Economics and Finance Volume (No.): 50 (November)
Online article (restrictions may apply)
Preliminary version


This paper proposes a theory of gazelle growth in which gazelles can grow either organically or through acquisitions. The model includes three types of firms: incumbent, target, and gazelle. We show that the lower cost of organic growth can increase the incentives for acquisition growth because the incumbent understands that if it acquires the target firm, the gazelle will then invest organically in order to grow, and therefore, the acquisition will not be enough to protect the incumbent’s market power. The gazelle could then acquire the target firm at a good price. We also show that financial support for the organic growth of gazelles can increase gazelles’ growth through acquisitions because incumbents’ preemptive motives are reduced.


Reference:
Caglar Kaya, Mehmet and Lars Persson (2019), "A Theory of Gazelle Growth: Competition, Venture Capital Finance and Policy". North American Journal of Economics and Finance 50(November), .

Lars Persson

Contact

Ph: +46 8 665 4504
lars.persson@ifn.se

Mehmet Caglar Kaya

Contact

Mob: +46 73 870 7327
mehmet_caglar.kaya@ne...

Interdisciplinary European Studies

The European Union and the Return of the Nation State

9783030350048_200x_the-european-union-and-the-return-of-the-nation-state.jpg

This book explores the complex and ever-changing relationship between the European Union and its member states. The recent surge in tension in this relationship has been prompted by the actions of some member state governments as they question fundamental EU values and principles and refuse to implement common decisions seemingly on the basis of narrowly defined national interests.

About the book

Events

Seminars organized by IFN

 

To present ongoing research informal brown-bag seminars are held on Mondays at 11:30 am. This is an opportunity for IFN researchers to test ideas and results.

Academically oriented seminars are most of the time held on Wednesdays at 10 am. At these events researchers from IFN and other institutions present their research.

In addition, IFN organizes seminars open to the public. Topics for these are derived from the IFN research.

Research Institute of Industrial Economics, Grevgatan 34 - 2 fl, Box 55665, SE-102 15 Stockholm, Sweden | Phone: +46-(0)8-665 45 00 | info@ifn.se