This study develops a theoretical model that parameterizes cross-sectional differences in opportunity set risk within venture capital markets. The theoretical model shows clusters of venture capital activity can be induced by non-monotonic relations that obtain between search costs for projects...

Obrimah (2016) motivates a new measure of market reputation for venture capitalists (VCs). This document reports firm level estimates of market reputations for sample VCs in Obrimah (2016). Explanatory notes can be found on last page of the document. For more detailed explanations, see Obrimah...

This study provides formal theoretical evidence for nesting of probability measures that are generated by risk aversion in probability measures that are generated by risk seeking preferences. In presence of highlighted nesting, conditional on independent parameterization of expectations...

This research note provides clear, unambiguous rationalization for the normative that applications of utility functions to modeling of expectations are non-robust, are, in relation to best practice, out of whack. With this inference in tow, all formal theoretical studies that apply utility...

Suppose an economy is characterized by triad of information asymmetries, efficient aggregation of information, and populations of fully rational agents. This economy is postulated to be an ideal economy for domicile of stock markets. This study shows that in absence of metrics for assessing each...

Financial Economists have over the years gained many insights from surveys of crop farmers in so far as different aspects of economic activity are concerned. In this study, using micro level survey data obtained from small scale entrepreneurs (farmers), I obtain a strictly concave inverted "U"...

I estimate stochastic frontier models for agricultural productivity using factors that proxy for absolute risk aversion (e.g. loan amounts) and factors that proxy for relative risk aversion (loan pricing or interest rates). Empirical findings show absolute risk aversion ceases to matter for...

We find financing helps make up for deficiencies in farming experience and the absence of crop insurance, such that farmers that have less experience or do not have crop insurance are more likely to adopt productivity enhancing activities. We also find farmers are less likely to spend on output...

In this paper, we find evidence of reversals in relative exit performance between the "short" and "long-run" in the VC market, with the short-run defined to be the first five years of business, and the long-run, the sixth year of business onwards. Using proxies for the risk of venture capital...

This study provides empirical evidence that trade credit durations implied by product distributors' business volumes (implied credit durations) generate business risk for trade credit providers. The study further demonstrates the existence of "optimal"credit durations that minimize business risk...