This study examines the consequences of loan denials for the investment performance of small and medium-sized German … investment than non-innovative companies. The non-randomness of loan denials is controlled for with a selection equation … mezzanine capital, when facing a loan denial. -- Investment ; loan availability ; innovation ; private equity …

We demonstrate how endogenous information acquisition in venture capital markets creates investment cycles when … uncoordinated screening behavior of competing financiers is an independent source of fluctuations inducing venture investment cycles …