Academic Journal of Business & Management, 2024, 6(12); doi: 10.25236/AJBM.2024.061226.
Lu Xiaotong
School of Economics, Qingdao University, Qingdao, Shandong, 266061, China
The risk management strategy of venture capital organizations in the process of segmented investment is the key to the success of their investment decisions, in which the contingent claims analysis, as an advanced financial tool, provides a new perspective for quantifying the investment risk at all stages. This study focuses on the segmented investment risk of venture capital institutions based on contingent claims analysis, and explores in depth the application mechanism of this analysis method in risk assessment and control. By constructing a contingent claims analysis model of segmented investment, the risk characteristics of different investment stages and their impact on the overall investment portfolio are analyzed. Actual cases in the global venture capital market in recent years are selected for empirical analysis, and combined with Monte Carlo simulation techniques, the potential return and risk distribution of each stage of investment are evaluated. Through regression analysis, the effectiveness of contingent claims analysis in predicting investment risks and optimizing investment strategies is revealed. Based on the above analysis, targeted risk management recommendations are proposed, including enhancing the dynamics of risk assessment, flexibly adjusting investment rounds and amounts, and constructing diversified investment portfolios, aiming to provide practical guidance for venture capital organizations to enhance the scientificity of investment decision-making and risk control ability.
contingent claims analysis; venture capital organizations; segmented investments; investment risk; risk management
Lu Xiaotong. A Study of Segmental Investment Risk of Venture Capital Organizations Based on Contingent Claims Analysis. Academic Journal of Business & Management (2024) Vol. 6, Issue 12: 184-192. https://doi.org/10.25236/AJBM.2024.061226.
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