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.

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Metadaten
Author:Douglas Cumming, Daniel Schmidt, Uwe WalzGND
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:Universit├Ątsbibliothek 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):License LogoDeutsches Urheberrecht