This paper presents novel evidence that a geographically based style matters for the design of financial contracts, in addition to more traditional ingredients. We analyze cash flow contingencies included in 1,804 private equity contracts between U.S. venture capitalists (VCs) and U.S. startup...

This paper shows that geographical elements can form an essential component of contract design in addition to more traditional ingredients such as information problems, moral hazard and legal institutions. We analyze cash flow contingencies included in 1,804 contracts between U.S. venture...

This paper shows that geographical and cultural elements could form an essential component of contract design in addition to more quot;traditionalquot; ingredients such as information and agency problems and the quality of legal institutions. Contracts between U.S. venture capitalists (VCs) and...

We show that geographical elements and regional culture can play an essential role in contract design in addition to the influence of more quot;traditionalquot; determinants such as information and agency problems or the nature of legal institutions. Across 1,800 financial contracts written...