In this paper, we examine how venture capital portfolios with risk averse and risk seeking return characteristics are priced by the representative investor in public equity markets. We find only portfolios with risk seeking return characteristics are associated with a market skewness premium....

This paper finds that industry specialization within a fund is associated with superior project picking ability in the venture capital market. We find that ex-ante judgments of superior project quality are associated with positive abnormal performance for specialist funds, while they are...

This paper finds that higher quality entrepreneurs time their entry into the venture capital market to minimize the cost of equity financing, and as part of an IPO market timing strategy. Specifically, higher quality entrepreneurs are more likely to enter the venture capital market when average...

Suppose a firm that produces `manufactureds', and that is located in a `high (production) cost' country is granted a patent and seeks to protect itself against competition which feasibly emerges at expiration of patent protection. Formal theoretical predictions show setting up of production in...

It is well accepted that economic growth that is premised, in entirety, on technical change equates to economic development. This study provides formal theoretical evidence that production functions inherently always are inappropriate to modeling of economic development. In stated respect,...

Satisfaction of either of the independence axiom, or its less stringent counterpart, `smoothness of utility functions' is necessary condition for robustness of applications of expected utility theory to modeling of recurring choice. This study arrives at a general equilibrium mathematical...

Typically, models of stock prices or returns assume homogeneity of risk preference parameters. This study shows modeling of IPO prices necessarily is with reference to the distribution of risk preference parameters that already are represented in secondary equity markets. Modeling of stock...

Formal theoretical proofs show modeling of stock returns on `everywhere differentiable' continuums always is inappropriate to modeling of rational expectations equilibriums (REE). Simultaneously, modeling of stock returns in discrete time always is robust to modeling of each of REE, or...

The literature on `empathy' empirically establishes empathy as a source of implicit discrimination that induces disparate impacts. This study provides formal theoretical validation for empathy as source of implicit discrimination that induces disparate impacts. Metrics for `disparate impact' -...

If a discretely formulated asset pricing model rivals efficacy of the Black and Scholes (1973) option pricing model, with canonical properties of option prices satisfied, rather counterfactually it spans a support space for call option prices that is continuous. Absent any directness of modeling...