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...

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...

In this paper we explain the apparent diversification discount of conglomerates without assuming inefficent-cross subsidisation through internal capital markets. Instead we assume that an internal capital market efficiently redistributes scare resources across a conglomerates divisions between...

In this paper, recent market access of the biggest bank in Eastern Europe, Sberbank of Russia, to the Turkish banking sector is investigated. The motives of Sberbank’s act are considered. Despite a long history of confrontation, Turkey and Russia have come closer in recent years, especially...

This paper examines whether the total debt ratio and bank ratio of listed companies have any impact on their fixed investment during the years in 2004-2009, and whether this impact, if it existed, differed among companies with differing investment opportunities. The study has reveals the total...

Based on panel data of the listed companies in China’s stock market A during a period of year 2007 - 2010, we made an empirical study on what drives the investment cash flow sensitivity and theeffect of management’s ownership and boththeir differences between the central stateowned...

The empirical study was focused predominantly on validity tests of the three theories on capital structures, the static trade-off theory, the pecking order theory (information asymmetry theory), and agency cost theory in the Tanzanian context. The study used secondary data from eight of the...

Given the opportunity to buy IPO shares of uncertain value at a fixed price, potentially informed investors have an incentive to refuse to participate in offerings the underwriter happens to overprice. We show that an underwriter can efficiently resolve this problem by entering into a repeat...

A bank can efficiently underwrite individually difficult to value IPOs by offering them as a package deal to a stable coalition of investors (block-booking). Block-booking banks set offer prices to equalize downside risk across their offerings, not expected returns. Examining US IPOs over the...

Private equity funds pay particular attention to capital structure when executing leveraged buyouts, creating an interesting setting for examining capital structure theories. Using a large, detailed, international sample of buyouts from 1980-2008, we find that buyout leverage is unrelated to the...