Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1019515 | Journal of Business Venturing | 2010 | 19 Pages |
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. We also show that country-specific differences exist apart from legal and economic development.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Douglas Cumming, Daniel Schmidt, Uwe Walz,