those investors may be willing to pay. A model is developed based on the principal-agent framework, which focuses on a risk … entrepreneur's abilities. The model shows that when the ability of entrepreneurs is common knowledge, they choose to involve risk …

-performing companies. Consequently, estimators of risk and return must correct for sample selection to obtain consistent estimates. We … previous studies. The methodology is generally applicable to estimating risk and return in illiquid markets with endogenous …

chose to invest, thus helping start-up companies receive VC funding and, ultimately, fostering the growth of high-risk …