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...

Suppose absence of agency problems in interactions between a representative angel investor who already is invested in a project (a 'pre-existing' angel investor), and a representative `entering' venture capitalist who provides a new infusion of capital into the same project. This study finds...

This study finds specification of minimum portfolio returns to be delivered by VCs in contracts that subsist between VCs and their principals is not a necessary condition for incentivization of optimal portfolio performance. Within populations of VCs who are characterized by risk aversion,...

Typically, studies of efforts of economic agents do not distinguish between efforts that directly generate returns (`return effort') and efforts that facilitate demonstration of return effort, that is, `return effort cost'. This study provides formal theoretical evidence that a distinguishing of...

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...

I find venture capitalists' (VCs') information production activities help decrease uncertainty about the valuations of new innovations within public equity markets, resulting in price convergence within the cross-section of Initial Public Offerings (IPOs) that are backed by different classes of...

I find venture capitalists' (VCs') information production activities help decrease uncertainty about asset valuations within public equity markets, resulting in price convergence within the cross-section of Initial Public Offerings (IPOs) that are backed by different classes of VCs and price...

This study develops a general equilibrium model within which self revelation of ability - that is not accompanied by any signaling - is compatible with arrival at rational expectations equilibriums (REE). In the model, economic agents either are 'confident', 'overconfident', or 'under-confident'...

This study examines the extent to which reputation constructs proposed in NAH (Nahata 2008) or OBH (Obrimah 2016a) exhibit uniqueness properties expected to be characteristic of reputation constructs. Empirical results provide evidence of concave (non-unique) relations between reputation...

Absent superior performance with respect to 'Portfolio Innovation Focus' (unexpected innovation), this study finds 'less experienced' ('competing') VCs, which only coinvest with other less experienced VCs, become less reputable than alternate less experienced ('non-competing') VCs who coinvest...