Cressy, Robert - In: Journal of Global Entrepreneurship Research 2 (2014) 1, pp. 1-10
We develop a theory of managerial replacement in which a venture capitalist monitors an investee firm run by a manager … manager will be replaced if and only if next period's signal falls below St+1. The probability of manager replacement is lower … return to professional replacement, the cost of investment and the costs of monitoring manager performance. Replacement is …