We study how the sequence of financing of Ramp;D varies according to the ease with which property rights over knowledge can be defined. There are two financiers, a venture capitalist and a corporation. The knowledge acquired in costly research becomes embodied in the researcher's human capital,...

Long-term relationships between business firms and investment banks are pervasive in developed security markets and there is evidence that better monitoring and information result from these relationships. Therefore, security markets should allocate resources better when an investment banking...