Investment scope decision
The first model aims at answering the question: How likely is a VC to invest in an international portfolio company, as opposed to investing in a PC located in the same nation? In the basic model, the dependent variable is the chosen investment scope: investment scope is a binary variable taking the value “1” if the investment is an international investment (i.e., PC and VC firm are located in different nations), or “0” if the investment is a national investment (i.e., PC and VC firm are located in the same nation). The basic model of the scope decision is pictured in Figure 9. The basic scope model estimates the VC’s probability to invest at a distance and is estimated by a logit regression.
KeywordsInternational Investment Portfolio Company Global Investment National Investment Scope Model
Unable to display preview. Download preview PDF.