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Venture Capital as Human Resource Management

40 Pages Posted: 20 Jun 2005  

Antonio Carvalho

affiliation not provided to SSRN

Antonio Gledson De Carvalho

Fundacao Getulio Vargas School of Business at Sao Paulo

Charles W. Calomiris

Columbia University - Columbia Business School; National Bureau of Economic Research (NBER)

Joao Amaro de Matos

Nova School of Business and Economics

Multiple version iconThere are 2 versions of this paper

Date Written: May 2005

Abstract

Venture capitalists add value to portfolio firms by obtaining and transferring information about senior managers across firms over time. Information transfer occurs on a significant scale and takes place both among a single venture capitalist%u2019s portfolio firms and between different venture capitalists%u2019 firms via a network of venture capitalists, which venture capitalists use to locate and relocate managers.Cross-sectional differences are associated with differences in the intensity with which venture capitalists network. The observable factors relevant in explaining the intensity with which venture capitalists network include: 1) the value of the information transmitted through the network, 2) the riskiness of the activities of portfolio firms, 3) the size of the venture capital fund, 4) the degree of difficulty in enticing executives to manage portfolio firms, and 5) the reputation of the venture capitalist for successfully recycling managers. These factors reflect costs and benefits to venture capitalists of participating in the network.

Suggested Citation

Carvalho, Antonio and De Carvalho, Antonio Gledson and Calomiris, Charles W. and Amaro de Matos, Joao, Venture Capital as Human Resource Management (May 2005). NBER Working Paper No. w11350. Available at SSRN: https://ssrn.com/abstract=727130

Antonio Carvalho (Contact Author)

affiliation not provided to SSRN

No Address Available

Antonio Gledson De Carvalho

Fundacao Getulio Vargas School of Business at Sao Paulo ( email )

R. Itapeva, 474 - 7o. andar
Sao Paulo 01313-902
Brazil
+5511 3281-7767 (Phone)

Charles Calomiris (Contact Author)

Columbia University - Columbia Business School ( email )

3022 Broadway
601 Uris, Dept. of Finance & Economics
New York, NY 10027
United States
212-854-8748 (Phone)
212-316-9219 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Joao Amaro de Matos

Nova School of Business and Economics ( email )

Campus de Campolide
Lisbon, 1099-038
Portugal

HOME PAGE: http://docentes.fe.unl.pt/~amatos

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