|
|
|
|
||||
|
||||
Legality and Venture Capital Governance Around the WorldDouglas CummingYork University - Schulich School of Business Daniel SchmidtUniversity of Frankfurt, CEPRES Center of Private Equity Research Uwe WalzGoethe University Frankfurt - Institute of Economics February 1, 2004 Journal of Business Venturing, Vol. 25, No. 1, pp. 54-72, 2010 Abstract: We analyze governance with a new 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 provide evidence that cross-country differences in legality, including legal origin and accounting standards, 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 investor board representation of the investor and the use of securities that do not require periodic cash flows prior to exit. We also show country-specific differences exist apart from legal and economic development.
Number of Pages in PDF File: 40 Keywords: Venture Capital, Corporate Governance, Syndication, Entrepreneurial Finance JEL Classification: G24, G31, G32 Accepted Paper SeriesDate posted: May 18, 2010Suggested CitationContact Information
|
|
|||||||||||||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo7 in 0.375 seconds
