Disclosure, Venture Capital and Entrepreneurial Spawning

48 Pages Posted: 17 Mar 2010 Last revised: 5 Jan 2011

See all articles by Douglas J. Cumming

Douglas J. Cumming

Florida Atlantic University

April M. Knill

Florida State University College of Business; Florida State University - College of Law

Multiple version iconThere are 2 versions of this paper

Date Written: May 5, 2010

Abstract

Venture capital funds (as well as private equity funds and hedge funds) in many countries around the world are facing increasing regulatory scrutiny since the 2007 financial crisis, particularly in respect of calls for increased disclosure requirements. In this paper, we examine whether more stringent securities regulation and disclosure requirements helps or hinders the supply and performance of venture capital. Further, we examine international differences in the impact of venture capital on new business creation. Based on data from 34 countries over the years 1998-2007, we find more stringent regulation and disclosure has a positive impact on the supply and performance of venture capital around the world, and a positive impact on entrepreneurial spawning induced by venture capital.

Keywords: Venture capital, Spawning, Disclosure, Securities regulation

JEL Classification: E6, G2, K2

Suggested Citation

Cumming, Douglas J. and Knill, April M., Disclosure, Venture Capital and Entrepreneurial Spawning (May 5, 2010). Available at SSRN: https://ssrn.com/abstract=1572652 or http://dx.doi.org/10.2139/ssrn.1572652

Douglas J. Cumming

Florida Atlantic University ( email )

777 Glades Rd
Boca Raton, FL 33431
United States

HOME PAGE: http://booksite.elsevier.com/9780124095373/

April M. Knill (Contact Author)

Florida State University College of Business ( email )

Tallahassee, FL 32306-1042
United States
(850) 644-2047 (Phone)

Florida State University - College of Law ( email )

425 W. Jefferson Street
Tallahassee, FL 32306
United States

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