Dynamic efficiency and path dependencies in venture capital markets.

Schertler, Andrea:

ISBN 10: 3540407103 / ISBN 13: 9783540407102

Published by Berlin / Heidelberg / New York, Springer Verlag, ., 2003

About this Item

Mit einigen Abbildungen. 190 S. Gr.-8°, Pp. Good condition. / Gut erhalten. Kieler Studien / Kiel Studies 327. Nachhaltige Buchlieferung - Stabile, plastikfreie Verpackung.

Seller Inventory # 15846

Bibliographic Details

• Title: Dynamic efficiency and path dependencies in venture capital markets.
• Publisher: Berlin / Heidelberg / New York, Springer Verlag, .
• Publication Date: 2003
• ISBN 10: 3540407103
• ISBN 13: 9783540407102
• Seller catalogs:
  • Wirtschaft

About this title

Synopsis

This book offers a new explanation why venture capital in investments differ substantially between countries. Recent literature has attributed these differences to differences in the financial architecture and tax regulations. By contrast, this book shows by using simulations of a general equilibrium model that interactions between venture capitalists' reputation building and experience accumulation lead to different levels of venture capital investments. The interactions taking place in venture capital markets can result in inefficiencies in experience accumulation. The study argues that government subsidies in such a situation may increase venture capitalists' experience accumulation. However, using an agency model, this study shows that subsidies can have negative effects since they reduce venture capitalists' incentives to support the management teams.