We study the relative effect of venture capital and bank finance on large manufacturing firms in local U.S. markets. Theory predicts that with venture capital, the firm size distribution should become more stretched-out to the right, but it’s ambiguous on the effect of banks on large firms....

We argue that in an unreliable enforcement regime, transactions tend to become intermediated through institutions or concentrated among agents bound by some form of private enforcement. Provision of funding shifts from risk capital to debt, and from markets to institutions with long term...

Innovation gilt als der Schlüssel zu Wirtschaftswachstum und in der modernen Ökonomie nimmt der Entrepreneur dabei die herausragende Rolle ein. Mit der Lissabon-Agenda 2000 wurde für die Europäische Union das Ziel gesetzt, der weltweit wettbewerbsfähigste und dynamischste wissensbasierte...

This paper examines the effect of trust in a micro-economic environment, where trust is clearly exogenous. Using a hand-collected data on European venture capital, we show that the Eurobarometer measure of trust among nations significantly affects investment decisions. This holds even after...

We develop a theory and empirical test of how the legal system affects the relationship between a venture investor and an entrepreneur. The theory uses a double moral hazard framework to show how optimal contracts and investor actions depend on the quality of the legal system. The empirical...

This study focused on two primary areas: 1. To determine what can be learned from biotech and drug development companies that suffered from financial problems and ultimately failed at the beginning of the 21st century. 2. To determine how intellectual capital developed in accordance with such...

This report is a synthesis of the previous literature analyzing the role of different types of companies on economic growth and employment, and an overlook on the impacts of different policy measures on companies. The role of large companies in the economy is still significant, although...

Zusammenfassung Fragestellung des Papieres ist, ob junge Unternehmen durch die Inanspruchnahme einer Beteiligungsfinanzierung (Untersuchungsgruppe) eine bessere unternehmerische Performance erzielen können im Vergleich zu einer „repräsentativen" Menge von nicht mit Beteiligungskapital...

Starting a firm with expansive potential is an option for educated and high-skilled workers. This option serves as an insurance against unemployment caused by labor market frictions and hence increases the incentives for education. We show within a matching model that reducing the start-up costs...