Legality and venture governance around the world
- We analyze governance with a dataset on investments of venture capitalists in 3848 portfolio firms in 39 countries from North and South America, Europe and Asia spanning 1971-2003. We find that cross-country differences in Legality have a significant impact on the governance structure of investments in the VC industry: better laws facilitate faster deal screening and deal origination, a higher probability of syndication and a lower probability of potentially harmful co-investment, and facilitate board representation of the investor. We also show better laws reduce the probability that the investor requires periodic cash flows prior to exit, which is in conjunction with an increased probability of investment in high-tech companies. Klassifikation: G24, G31, G32.
| Author: | Douglas J. CummingORCiDGND, Daniel Schmidt, Uwe WalzORCiDGND |
|---|---|
| URN: | urn:nbn:de:hebis:30-10681 |
| Parent Title (German): | Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2004,17 |
| Series (Serial Number): | CFS working paper series (2004, 17) |
| Document Type: | Working Paper |
| Language: | English |
| Year of Completion: | 2004 |
| Year of first Publication: | 2004 |
| Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Release Date: | 2005/06/13 |
| Tag: | Corporate Governance; Entrepreneurial Finance; Syndication; venture capital |
| GND Keyword: | Risikokapital; Corporate Governance; Geschichte 1971-2003 |
| Issue: | April 2004 |
| HeBIS-PPN: | 222325682 |
| Institutes: | Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) |
| Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| Licence (German): |  Deutsches Urheberrecht |
