Strategic Investor - Explained
What is a Strategic Investor?
Written by Jason Gordon
Updated at July 14th, 2021
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What is a Strategic Investor?
Individual investors or firms who invest with the goal of acquiring strategic advantages rather than simply financial returns are called Strategic Investors. For e.g., investing in a new product or idea to have more of a say in its later development and direction, rather than to earn money from its sales is a Strategic Investment.
A Strategic Investor often wants access to the invested business technology, ideas, services, or products, to enhance its own business model.
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Academic Research on Strategic Investors
- Financial contracting with strategic investors: Evidence from corporate venture capital backed IPOs, Masulis, R. W., & Nahata, R. (2009). Journal of Financial Intermediation, 18(4), 599-631. This paper sheds light on the practice of financial contracting in strategic investments.
- Regional economic development, strategic investors, and efficiency of Chinese city commercial banks, Sun, J., Harimaya, K., & Yamori, N. (2013). Journal of Banking & Finance, 37(5), 1602-1611. This paper looks at Strategic Investors in the Chinese banking systems and their impact on regional economic development.
- A Risk Analysis of Chinese Banking Industry Introducing Strategic Investors [J], Shuo, Z. H. A. N. (2005). The Study of Finance and Economics, 1, 010. This paper does a risk analysis study of Strategic Investments in the Chinese Banking industry.
- Foreign strategic investors in the Chinese banking market: Cultural shift or business as usual?, Hawes, C., & Chiu, T. (2007). Banking & Finance Law Review, 22(2), 203. This paper sheds light on the presence of foreign Strategic Investors in the Chinese banking market and attempts to decipher the unusualness of this phenomenon.
- Impact of foreign strategic investors on earnings management in Chinese banks, Wu, M. W., Shen, C. H., Lu, C. H., & Chan, C. C. (2012).Emerging Markets Finance and Trade, 48(5), 115-133. This paper studies the impact of foreign Strategic Investors on the Chinese banking sectors earnings and management.
- Do more foreign strategic investors and more directors improve the earnings smoothing? The case of China, Wu, M. W., Shen, C. H., & Lu, C. H. (2015). International Review of Economics & Finance, 36, 3-16. This paper studies the Chinese banking industrys earnings to gauge the impact of increase in Strategic Investors in the market.
- Privatization governance and strategic investors: evidence from the telecommunications industry, Welch, T. (1999). Management International, 4(1), 31. This paper sheds light on the Strategic Investors in the telecommunications industry and their impact on privatization governance.
- Performance, Controlling Stake and Strategic Investors: Experience from Banking Reform in Transitional Economy, Zhi-feng, W. U. (2006). In Finance Forum (Vol. 5, p. 001). This paper studies the transitional Eastern European and Chinese markets with banking reforms to understand the role of Strategic Investors, controlling stakes and market performance.
- The Impact of Foreign Strategic Investors on Transition and Development of Banking Industry in 8 Central and East Europe [J], Shikai, L. (2006). Studies of International Finance, 9, 005. This paper analyses the impact of Strategic Investors on banking reforms in eight Central and Eastern European markets.
- Committed anchor investment and IPO survivalThe roles of cornerstone and strategic investors, Espenlaub, S., Khurshed, A., Mohamed, A., & Saadouni, B. (2016). Journal of Corporate Finance, 41, 139-155. This paper studies the role of Strategic Investors in the survival of IPOs.
- Research on share control right of state-owned banks following strategic investors import, Shuo, Z. (2006). Modern Economic Science, 5, 38-44. This paper presents a research study that examines the state of share control rights in state owned banks post Strategic Investments.