Financial contracting theory meets the real world: An empirical analysis of venture capital...
We compare the characteristics of real-world financial contracts to their counterparts in financial contracting theory. We do so by studying the actual contracts between venture capitalists (VCs) and entrepreneurs. The distinguishing
1. INTRODUCTION
There is a large academic literature on the principal-agent problem in financial contracting.1 The papers in this literature often begin with a situation in which an investor negotiates with an entrepreneur over the financing of a project or company. Despite the large volume of theory, relatively little empirical work exists that compares the characteristics of real-world financial contracts to their counterparts in financial contracting theory.2 In this paper, we attempt to inform theory by describing in detail the contracts between VCs and entrepreneurs. We compare the actual contracts to the assumed and predicted ones in different financial contracting theories.
In addition, make sure to read these articles:
- Venture Capitalists Optimistic About Investment Climate, But Impact of Technology Shakeout...
- Small Business Financing Options
- UniversityAngels.com Facilitates Additional InvestmentDeals.
- Mincing Words — The Definition of Cash Flow
- Valuing Susquehanna: 2004 Radio Cash Flow was $64 Million
- Cash flow software.
- Venture capitalists as economic principals.
- Avoiding a cash flow crunch: accurate projections are key to your business' survival.
- Ownership and control rights in Internet portal alliances, 1995-1999.
- Making the cash flow down south
- Macquarie Mortgages unveils cash-flow calculator
- Manage Your Cash Flow
- Macquarie Mortgages unveils cash-flow calculator.
- What Is Cash Flow?
- Voting rights, private benefits, and takeovers
Email
Digg It
del.icio.us
Related Resources
Press Releases
Business Resources
Sponsored Links
Site Map | Contact Us | FAQs | About Us | Media Kit | Reprints | RSS Directory | Sign Up for Free Newsletters | Disclosure Policy
Copyright © 1999 - 2008 AllBusiness.com, Inc. All rights reserved.
No part of this content or the data or information included therein may be reproduced,
republished or redistributed without the prior written consent of AllBusiness.com.
Use of this site is governed by our Copyright and Intellectual Property Policy, Terms of Use Agreement and Privacy Policy.
Provided by ProQuest, LLC. All rights Reserved.
You may not repost, republish, reproduce, package and/or redistribute the content of this page,
in whole or in part, without the written permission of the copyright holder.
Online Business Database | Online Business Information | Email Marketing Lists | Sales and Marketing Solutions | Business Mailing Lists
AllBusiness.com, its parent company D&B, and its affiliates.
