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. Theory has identified three primary ways that the investor / principal can mitigate these conflicts - structuring financial … work and its relation to theory for one prominent class of principals venture capitalists (VCs). The empirical studies … indicate that VCs attempt to mitigate principal-agent conflicts in the three ways suggested by theory. The evidence also shows …
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Information-based theories of financial intermediation focus on delegated monitoring. However, there is little evidence on how markets discipline intermediaries who fail at this function. We exploit the direct link between corporate fraud and monitoring failure and examine how a venture capital...
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