Bottazzi, Laura; Da Rin, Marco; Hellmann, Thomas - In: Journal of Financial Intermediation 18 (2009) 4, pp. 559-598
We develop a theory' and empirical test of how the legal system affects the relationship between venture capitalists and entrepreneurs. The theory uses a double moral hazard framework to show how optimal contracts and investor actions depend on the quality of the legal system. The empirical...
