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Conditional Allocation of Control Rights in Venture Capital Firms
Gebhardt, Georg; Schmidt, Klaus M. - C.E.P.R. Discussion Papers - 2006
When a young entrepreneurial firm matures, it is often necessary to replace the founding entrepreneur by a professional manager. This replacement decision can be affected by the private benefits of control enjoyed by the entrepreneur which gives rise to a conflict of interest between the...
Persistent link: https://www.econbiz.de/10005124147
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Convertible Securities and Venture Capital Finance
Schmidt, Klaus M. - C.E.P.R. Discussion Papers - 1999
This paper offers a new explanation for the prevalent use of convertible securities in venture capital finance. Convertible securities can be used to endogenously allocate cash flow rights as a function of the realized quality of the project. This property can be used to mitigate the double...
Persistent link: https://www.econbiz.de/10005666482
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Taxation and Venture Capital-Backed Entrepreneurship
Keuschnigg, Christian; Nielsen, Soren Bo - C.E.P.R. Discussion Papers - 2003
capital-backed entrepreneurship. We also argue that dividend and capital gains taxes on mature firms have important …
Persistent link: https://www.econbiz.de/10005504248
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Debt or Equity? The Role of Venture Capital in Financing the New Economy in Germany
Audretsch, David B; Lehmann, Erik - C.E.P.R. Discussion Papers - 2002
Using a dataset of the firms listed on the Neuer Markt in Germany, this Paper demonstrates that venture backed firms differ from firms with other financial resources, especially debt. Thus, the results of this study provide evidence for the hypothesis that small and innovative firms are more...
Persistent link: https://www.econbiz.de/10005504258
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What are Firms? Evolution from Birth to Public Companies
Kaplan, Steven; Sensoy, Berk A.; Strömberg, Per Johan - C.E.P.R. Discussion Papers - 2005
We study how firm characteristics evolve from early business plan, to initial public offering, to public company for 49 venture capital financed companies. The average time elapsed is almost six years. We describe the financial performance, business idea, point(s) of differentiation, non-human...
Persistent link: https://www.econbiz.de/10005792538
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Tax Policy, Venture Capital and Entrepreneurship
Keuschnigg, Christian; Nielsen, Soren Bo - C.E.P.R. Discussion Papers - 2000
an entrepreneurial sector, the Paper investigates the effects of taxes on the equilibrium level of entrepreneurship and …
Persistent link: https://www.econbiz.de/10005666436
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Entrepreneurship in Equilibrium
Gromb, Denis; Scharfstein, David - C.E.P.R. Discussion Papers - 2002
This Paper compares the financing of new ventures in start-ups (entrepreneurship) and in established firms … can arise (and sometimes coexist). In a low (high) entrepreneurship equilibrium, the market for failed entrepreneurs is … (entrepreneurship). We also characterize conditions under which there can be too little or too much entrepreneurial activity in …
Persistent link: https://www.econbiz.de/10005789057
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The Organization of the Innovation Industry: Entrepreneurs, Venture Capitalists and Oligopolists
Norbäck, Pehr-Johan; Persson, Lars - C.E.P.R. Discussion Papers - 2006
Exit of venture-backed firms often takes place through sales to large incumbent firms. We show that in such an environment, venture-backed firms have a stronger incentive to develop basic innovations into commercialized innovations than incumbent firms, due to strategic product market effects....
Persistent link: https://www.econbiz.de/10005791605
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Financial Innovation and Endogenous Growth
Laeven, Luc; Levine, Ross; Michalopoulos, Stelios - C.E.P.R. Discussion Papers - 2009
We model technological and financial innovation as reflecting the decisions of profit maximizing agents and explore the implications for economic growth. We start with a Schumpeterian endogenous growth model where entrepreneurs earn monopoly profits by inventing better goods and financiers arise...
Persistent link: https://www.econbiz.de/10008528522
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Venture Capital, Patenting, and Usefulness of Innovations
Fabrizi, Simona; Lippert, Steffen; Norbäck, Pehr-Johan; … - C.E.P.R. Discussion Papers - 2011
We analyze incentives to develop entrepreneurial ideas for venture capitalists (VCs) and incumbent firms. If VCs are sufficiently better at judging an idea's value and if it is sufficiently more costly to patent low than high value ideas, VCs acquire valuable ideas, develop them beyond the level...
Persistent link: https://www.econbiz.de/10009643508