Showing 1 - 10 of 28
We develop a model in which cash-constrained entrepreneurs seek a venture capitalist (VC) to finance a new firm. Costly monitoring is employed by VCs to reduce entrepreneurial moral hazard. When monitoring reveals poor performance, VCs want to punish the entrepreneur with liquidation. However,...
Persistent link: https://www.econbiz.de/10010661352
We present a model of cash constrained entrepreneurs who need an investor to finance their project. Investors can either be uninformed, such as individual bondholders, or informed, such as venture capitalists and banks. There is an entrepreneurial moral hazard problem, which can be partially...
Persistent link: https://www.econbiz.de/10010661398
Using a newly constructed data set, we compare sources of funds and investment strategies of venture capital (VC) funds … particularly important in Germany, corporations in Israel, insurance companies in Japan, and pension funds in the UK. VC investment … investment patterns across countries, other considerations (such as supply of entrepreneurs) are of greater significance. …
Persistent link: https://www.econbiz.de/10010661418
Lower underpricing amongst venture-backed IPOs has been attributed to a certification role for venture capitalists. We argue that differences in underpricing per se are uninformative and possibly misleading when not controlling for differences in entrepreneurs` incentives to control...
Persistent link: https://www.econbiz.de/10011146237
, investment rates are low.  I investigate three sources: detailed World Bank surveys of 6,500 manufacturing firms, a new panel … returns to be high throughout.  Micro-evidence and sectoral FDI data confirm that investment remains low outside the mining … industry and that the link between past profitability and current investment is weak in Africa.  Low investment despite high …
Persistent link: https://www.econbiz.de/10011004291
that, in case of multiple equilibria, consumers use the investment in quality as a coordination device.  We find that, in … equilibrium, platforms randomize over two disconnected intervals of investment levels, corresponding to competing for either the …
Persistent link: https://www.econbiz.de/10011004414
This paper examines how foreign ownership affects the investment decisions of subsidiary firms using a new dataset of … listed-parent - listed-subsidiary pairs.  We find that improvements in the investment opportunities of parent firms have a … negative effect on the investment of their subsidiaries, after controlling for the investment opportunities of the subsidiary …
Persistent link: https://www.econbiz.de/10011004467
conditional correlation between trade openness and GDP per head growth - though openness has a positive link via investment. The …
Persistent link: https://www.econbiz.de/10011277852
This paper extends the model of Fielding (1999), which is designed to explain changes in investment in South Africa … the political factors, but these factors do explain some of the variation in investment over time. …
Persistent link: https://www.econbiz.de/10010604925
We present evidence that an increase in investment as a share of GDP predicts a higher growth rate of output per worker … coefficients. They are robust to model specifications and estimation methods. The evidence that investment has a long-run effect on …
Persistent link: https://www.econbiz.de/10010604939