Loading...
Please wait, while we are loading the content...
Characteristics, Contracts, and Actions: Evidence from Venture Capital Analyses.” Unpublished working paper (2002)
| Content Provider | CiteSeerX |
|---|---|
| Author | Tirole, Jean Zingales, Luigi Strömberg, Per White, Lucy Kaplan, Steven N. |
| Abstract | We study the investment analyses of 67 portfolio investments by 11 venture capital (VC) firms. VCs describe the strengths and risks of the investments as well as expected post-investment actions. We classify the risks into three categories and relate them to the allocation of cash flow rights, contingencies, control rights and liquidation rights between VCs and entrepreneurs. The risk results suggest that agency and hold-up problems are important to contract design and monitoring, but that risk sharing is not. Greater VC control is associated with increased management intervention while greater VC equity |
| File Format | |
| Publisher Date | 2002-01-01 |
| Access Restriction | Open |
| Subject Keyword | Hold-up Problem Cash Flow Right Liquidation Right Increased Management Intervention Venture Capital Analysis Contract Design Portfolio Investment Risk Sharing Post-investment Action Control Right Greater Vc Control Risk Result Investment Analysis Vc Equity Venture Capital |
| Content Type | Text |
