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Evolution of decision and control rights in venture capital contracts: an empirical analysis

Bienz, Carsten; Walz, Uwe - London School of Economics (LSE) - 2006

We analyze the structure and evolution of the allocation of decision and control rights in venture capital contracts by using a sample of 464 contracts between venture capitalists (VC) and portfolio firms from Germany. We focus on the evolution of control and decisions rights along three time...

Persistent link: https://www.econbiz.de/10010745436

The dynamics of venture capital contracts

Bienz, Carsten; Hirsch, Julia - London School of Economics (LSE) - 2005

We analyze the degree of contract completeness with respect to staging of venture capital investments using a hand-collected German data set of contract data from 464 rounds into 290 entrepreneurial firms. We distinguish three forms of staging (pure milestone financing, pure round financing and...

Persistent link: https://www.econbiz.de/10010746202

Financing and corporate growth under repeated moral hazard

Anderson, Ronald W.; Nyborg, Kjell G. - London School of Economics (LSE) - 2001

as inside equity and debt. We call our framework the two-stage model of firm growth. A key finding is that outside equity … promotes ex post efficiently (second stage growth) at the expense of ex ante efficiently (first stage growth) which debt work … the opposite way. This is because equity promotes replacement of the entrepreneur, while debt promotes entrenchment. So …

Persistent link: https://www.econbiz.de/10010744895

Mapping and measuring the distribution of household wealth: a cross-country analysis

Cowell, Frank; Karagiannaki, Eleni; McKnight, Abigail - London School of Economics (LSE) - 2012

wealth households but high relative measures of wealth inequality. Italian households hold very little debt and are much more … to hold much more housing debt well into retirement. Increases in owner occupation and house prices 2000-05 in the UK has … composition, educational attainment and income as well as wealth and debt portfolios. Educational loans are increasing in their …

Persistent link: https://www.econbiz.de/10010746528

Capital structure, investment, and fire sales

Gale, Douglas; Gottardi, Piero - London School of Economics (LSE) - 2014

, trading off the tax advantages of debt against the risk of costly default. The costs of bankruptcy are endogenously determined … constrained inefficient. In particular there is too little debt and too little default. …

Persistent link: https://www.econbiz.de/10011170093

Accounting for cross-country differences in wealth inequality

Cowell, Frank; Karagiannaki, Eleni; McKnight, Abigail - London School of Economics (LSE) - 2013

This paper adopts a counterfactual decomposition analysis to analyse cross-country differences in the size of household wealth and levels of household wealth inequality. The findings of the paper suggest that the biggest share of cross-country differences is not due to differences in the...

Persistent link: https://www.econbiz.de/10011126314

Capital structure and investment dynamics with fire sales

Gale, Douglas; Gottardi, Piero - London School of Economics (LSE) - 2013

advantages of debt against the risk of costly default. The costs of default are endogenous: bankrupt firms are forced to …, firms’ investment is too low and, although the capital structure is chosen optimally, in equilibrium too little debt is used …

Persistent link: https://www.econbiz.de/10011163502

DEBT NEUTRALITY, REDISTRIBUTION AND CONSUMER HETEROGENEITY: A SURVEY AND SOME EXTENSIONS - AND - DEBT NEUTRALITY, PROFESSOR VICKREY AND HENRY GEORGE'S SINGLE TAX.

BUITER, W. - London School of Economics (LSE) - 1988

Persistent link: https://www.econbiz.de/10005475174

Loan maturity and renegotiation evidence from the lending practices of large and small banks

Albertazzi, Ugo - London School of Economics (LSE) - 2007

addressed by choosing short-term maturities. Theories of debt renegotiation suggest that the credibility of the implicit …

Persistent link: https://www.econbiz.de/10010745643

ART versus reinsurance: the disciplining effect of information insensitivity

Brandts, Silke; Laux, Christian - London School of Economics (LSE) - 2005

We provide a novel benefit of "Alternative Risk Transfer" (ART) products with parametric or index triggers. When a reinsurer has private information about his client’s risk, outside reinsurers will price their reinsurance offer less aggressively. Outsiders are subject to adverse selection as...

Persistent link: https://www.econbiz.de/10010745956