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entrepreneurs are better informed than the venture capitalists (VCs). We demonstrate that for a well-designed contract the … variability of the return is sufficiently large, the entrepreneurs will find it desirable to rely on convertible securities with … with which the entrepreneurs are awarded equity shares without investment outlays. We compare the different financing …
Persistent link: https://www.econbiz.de/10009365428
We examine the effect of trust on financial investment and contracting decisions in a micro-economic environment where trust is exogenous. Using hand-collected data on European venture capital, we show that the Eurobarometer measure of trust among nations significantly affects investment...
Persistent link: https://www.econbiz.de/10011090711
It is widely recognized that foreign direct investment (FDI) plays an important role in economic development. Internationalization theory is used to explore how inward FDI impacts entrepreneurial activity. Using data from the Global Entrepreneurship Monitor we find significant differences in...
Persistent link: https://www.econbiz.de/10005765260
capitalists and entrepreneurs. Specifically, the case shows how venture capitalists add value beyond their invested capital but …
Persistent link: https://www.econbiz.de/10012752799
Changes in the financial market and attempts at implementation of prudential regulation proposals after the recent financial crisis resulted in the scientific conference entitled International Conference on Management, Banking and Finance, held at the Faculty of Management, University of Warsaw,...
Persistent link: https://www.econbiz.de/10011162565
criteria was developed on previously developed lists. The criteria fell into six groups: the entrepreneur’s personality, the … entrepreneur’s experience, characteristics of the product or service, characteristics of the market, financial consideration and … entrepreneur’s personality and experience are seen as being primary indicators of the venture’s potential. …
Persistent link: https://www.econbiz.de/10005134795
This study analyzes the performance of investments made by venture capital (VC) funds that specialize in financing minority business enterprises (MBEs). We explore the hypothesis that financing MBEs offers attractive returns to VC funds because this market niche is underserved. Traits of the VC...
Persistent link: https://www.econbiz.de/10012721740
Managing the different companies in which they invest and at the same time performing portfolio optimization for themselves, venture capitalists position themselves as a pure-play or diversified conglomerate through their cumulative portfolios. I examine the effects of two investment strategies...
Persistent link: https://www.econbiz.de/10012721858
entrepreneurs and VCs use to select an unbiased independent director. I conclude by considering implications for corporate law and …
Persistent link: https://www.econbiz.de/10012723702
Differences in financial behaviour are explained in the literature by reference to the theory of asymmetrical information, and in particular to the concept of information opacity. The same literature indicates that because SMEs are an opaque type of company, they tend to have relational...
Persistent link: https://www.econbiz.de/10012724035