[...]Our analysis suggests that, when we look across banks, themarket risk capital figures provide little additional informationabout the extent of an institution’s market risk exposurebeyond that conveyed by simply knowing the relative size of thetrading account. In contrast, when we look at...

As most other countries, Germany also faces dramatic regional differences in terms of socioeconomic development. One important driver of such development is the existence of a healthy entrepreneurial activity and the creation of new companies. We argue that venture capital (VC) and especially...

Over the past ten years, private equity and venture capital have played an increasingly important role in the European economy. In parallel to the increase in investments, contribution of the private equity and venture capital industry to employment in Europe has grown.Against this background,...

The start-up team plays a key role in venture capitalists’ evaluations of venture proposals. Ourfindings go beyond existing research, first by providing a detailed exploration of VCs’ team evaluationcriteria, and second by investigating the moderator variable of VC experience. Our results...

This paper extends recent research studying biases in venture capitalist’s decision-making. Wecontribute to this literature by analyzing biases arising from similarity between a venture capitalist andmembers of a venture team. We summarize the psychological foundations of such similarity...

Venture capitalist are intermediaries with strong advantages in financingrisky investments (Leland/Pyle 1977, Chan 1983, Diamond 1984; Bygrave 1988)...

Why do private firms stay private? Empirical evidence on this issue is sparse, as most private firms in the US do not report their financial results. We investigate why private status matters by taking advantage of a unique dataset of large, leveraged private firms with SEC filings. Unlike a...

Based on 1182 dyads of venture capitalists and German portfolio companies involved ina financing round between 2002 and 2007, we examine the importance of spatialproximity between investors and investees in a dense economy. We find that theprobability of a financing relationship decreases by 8%...

Für die Bestimmung des versicherungstechnischen Risikokapitals ist die Abbildung von Katastrophenschäden von essenzieller Bedeutung. Dabei ist es dringend erforderlich, dass die kapitalentlastende Wirkung nicht-proportionaler Rückversicherung nicht nur für Naturereignisse, sondern auch für...

In this paper we investigate the risk return relationship of Private Equity (PE) relative to Public Market Equity (PM) investments to assess the adequateness of PEs return premium. We analyze cash flows of PE projects gross of fees and any other externalities. Our analysis is based on simulated...