Venture Capital-Backed Firms, Unavoidable Value-Destroying Trade Sales, and Fair Value Protections

Prediction of Equity Values for Venture Capital Backed Firms

This study investigates the predictability of firm values for venture capital-backed firms. Having insights into the internal documents of more than 300 venture capitalists, we derive three common categories of firm value drivers: team characteristics, firm and market characteristics, and accounting information. Based on these value drivers, we provide a regression based valuation approach, whi...

Corporate Venture Capital and the Value-added for Technology-based New Firms

Cost Stickiness: Value Creating or Value Destroying (The Iranian Experience)

This research reviews and tests two contradicting notions in cost stickiness literature by empirical recognition of the consequences of cost stickiness. Cost stickiness is consistent with both rational resource planning and opportunistic incentives of manager to increase personal benefits arising from status and power. Although both mechanisms involve asymmetric retention of slack, some of the ...

Competition, Contracting, and Value Creation in Venture Capital Finance∗

We embed venture capital contracting in a search market environment where venture capitalists and entrepreneurs meet and bargain over optimal contracts. We find that both the composition and type of financial claims held by the venture capitalist and entrepreneur depend critically on the underlying market structure. In some cases both parties hold a mix of debt and equity while in others only o...

Finance , Innovation & Growth ( FINNOV ) Innovation in Venture - Capital Backed Clean - Technology Firms in the UK