We argue two alternative routes that lead entrepreneurial start-ups to acquisition outcomes instead of liquidation. On one hand, acquisitions can come about through the control route with external financers such as venture capitalists (VCs). VCs take control through their board seats along with...

In this paper, we investigate the association between venture capital (VC) backing and internal control quality, as well as the effect of VC backing on the informativeness of material weaknesses in internal control disclosures. We find that VC-backed companies have stronger internal control...

Private independent limited partnership venture capital funds receive capital from institutional investors, without tax incentives. Limited partnership investment activities are governed by restrictive covenants that are determined by negotiated contract between the fund managers (general...

Governance has many dimensions – corporate governance pertains to the firm's management whilst sovereign governance pertains to the firm's exposure to sovereign risk, corruption, and poor regulation. We show that both are important drivers of firm value and this has serious implications for...

This paper reviews recent literature on financial market institutions, governance, agency costs, and misconduct, and summarizes papers in this special issue. The papers contribute to the misconduct and governance literature in relation to the role of auditors, boards of directors, CEOs,...