Legality and venture capital governance around the world
We analyze governance with a new dataset on investments of venture capitalists in 3848 portfolio firms in 39 countries from North and South America, Europe and Asia spanning 1971-2003. We provide evidence that cross-country differences in legality, including legal origin and accounting standards, have a significant impact on the governance structure of investments in the VC industry: better laws facilitate faster deal screening and deal origination, a higher probability of syndication and a lower probability of potentially harmful co-investment, and facilitate investor board representation of the investor. We also show that country-specific differences exist apart from legal and economic development.
Year of publication: |
2010
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Authors: | Cumming, Douglas ; Schmidt, Daniel ; Walz, Uwe |
Published in: |
Journal of Business Venturing. - Elsevier, ISSN 0883-9026. - Vol. 25.2010, 1, p. 54-72
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Publisher: |
Elsevier |
Keywords: | Venture capital Corporate governance Syndication Entrepreneurial finance |
Saved in:
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