2 Long term Equity Investments

(1) if he she gains the stock equity of the enterprise, he she shall take part in the profit distribution in common with other investors and

if the assets sold are equity, the total assets, business income and net assets are respectively the product of total assets, business income and net assets of the invested enterprise and the equity percentage of the investment.

Article 14 An enterprise may accept the capital contribution made by an investor in the form of monetary, real object, intangible assets, stock equity, or specific creditor's right and so on, among which, the specific creditor's right means the convertible bonds issued by the enterprise under law and the creditor's rights that are converted into equity under the related provisions.

The authors present a broad, detailed, and fair assessment of private equity the business of investing in established companies through debt financed purchases of controlling stakes. (By contrast, venture capitalists support start ups almost entirely through equity.)

The policy sought to promote OFDI only in the form of joint ventures (JVs) with minority Indian ownership participation.

An increase in the stock price of steel manufacturers suggests an increase in the demand for steel, which induces entrepreneurs to start more steel plants and investors to provide them with the money. Conversely, a decrease in the stock price of steel manufacturers leads entrepreneurs to liquidate existing plants and dissuades investors from committing more resources to the sector.

The beneficiary ownership structure of an enterprise is of great importance in an investment decision, especially with regard to the equitable treatment of shareholders.

The Indian entity held 56 per cent stake.

As for an overseas investment, an enterprise shall conclude a contract thereon in written form so as to clarify the rights and interests it may enjoy from this investment and to carry out financial supervision.

Investment, enterprise and technology

It also included the part that the profits allocated to the overseas investors belonged to the earnings from equity investments of dividends and bonus generated by the retained earnings which had been achieved for what was actually allocated to the investors by the enterprises held by Chinese residents.

Investment and enterprise competitiveness

An enterprise's repurchase of the shares under law shall comply with the related conditions and financial treatment measures and be determined by the investors.

The 1992 policy removed the restriction on ownership participation and the Indian entity is free to decide on the exact level of ownership it wants to hold in overseas ventures.

In performing the delivery, the part of the equity investment whose payment has not been obtained yet shall be settled under the contract and the effective guarantee of the assignee shall be gained.

Investment, technology and enterprise development

Widely held and controlled companies differ considerably in the governance problems their investors face. In widely held firms, the concern is about opportunism by managers, who exercise de facto control in controlled firms, the concern is about opportunism by the controlling shareholder at the expense of minority shareholders.

Enterprise, investment and competition policy

34. Investment, enterprise development and technology.

(g) Investment mechanisms and joint ventures

As the preferred destination for Chinese enterprises to enter Germany, Nordrhein Westfalen has attracted more than 800 Chinese enterprises to invest there, and the local government expected Chongqing entrepreneurs to go to this popular region for investment to feel the local investment environment.

Declaration on International Investment Binding non

An emphasis on investment shifts the focus of development strategy to the entrepreneurial class and its interaction with the state, including whether and how public investment crowds in private investment.

Software SMEs contributed significantly to OFDI stock (47 per cent), whereas manufacturing OFDI by SMEs was small (table 6).

OFDI and enterprise competitiveness

Investments by economic enterprises, in particular, rose by 38 per cent. Bulgaria 1995 , p. 77.

Article 17 In case capital actually paid by the investors exceeds the registered capital (including stock premiums), an enterprise shall manage the surplus as capital reserve.

SMEs investing abroad can normally be found among the more growth oriented SMEs.

Indian OFDI by SMEs is similar to that by Indian TNCs in that it originated from a broad spectrum of manufacturing industries.

Where's the provision determining the ratio of investment to controlling interest?

Outward foreign direct investment by Indian small and medium sized enterprises

The Board is empowered to invest money in industrial and commercial undertakings, establish and operate commercial and industrial enterprises and develop immovable property.

For instance, OFDI approvals by SMEs accounted for 26 per cent cases of manufacturing activities and 41 per cent cases in the software industry.

That law prevents any shareholder who controls more than 20 of voting shares in Volkswagenwerk GmbH (VW) from casting more than 20 of the votes in a shareholders' meeting. It also decrees that a majority of more than 80 of shareholder votes is required for important decisions in the company.

It supports the development of the microenterprise and small scale business sector by providing working capital and capital investment loan products.

Not just large Chinese enterprises but SMEs too are investing abroad.

Since the majority of SMEs investing abroad are looking for local SMEs to partner with, it is important that host countries encourage the development of their SME sectors so that local enterprises have the capability to form alliances or joint ventures with the investing SMEs from abroad (Cho 2003 UNCTAD 1998).

At the same time, China maintains restrictions on direct investment by foreigners, limiting both the kinds of firms and the share of joint ventures that they can own. The official policy is to reduce the barriers to foreign corporate investment, especially in high tech and the service sector.

The stocks investment?

Surmounting these business challenges is an expensive and slow process, and new ventures require many years to become cash positive. As a result, commercial providers of debt or equity cannot get the high returns and quick exits that they seek.

As minority shareholders in firms whose managers are appointed by the Central Personnel Ministry, private actors cannot influence decision making. Until the central government is willing to yield its control over SOE management, ownership reforms are likely to spark only tepid interest from the private sector.

OFDI and enterprise competitiveness 11

OFDI by SMEs Emerging patterns 7

Case study on outward foreign direct investment by Singaporean firms