Drawing on a novel dataset of worldwide venture capital deals, we investigate how venture capitalists (VCs) overcome the complexity of investing in geographically and institutionally distant regions. Our results indicate that syndicating with local VCs is a common way for foreign VCs to gain deal access, overcome the complexity of investing in distant regions and offset their lack of within-cou...

I develop a continuous-time model of reputation in which a privatelyinformed seller, such as a startup, tries to court a forward-looking buyer, such as a venture capitalist (VC). The VC learns gradually about the startup’s quality, high or low, through exogenous news and can adopt at any time. The startup can exit or privately upgrade its quality at any time. I discover two novel kinds of reput...

In this paper, we extend information economics to the literature on R&D alliance partner selection by showing the different ways in which venture capitalists (VCs) shape entrepreneurial ventures’ partner selection decisions for R&D collaborations. Specifically, we advance the argument that affiliations with VCs can play a dual role in reducing the risk of adverse selection for R&D collaboration...

This study examines the valiie relevance of miindated disclosures by UK firms of the investor-finn share o{ liabilities of equily-aecounled ass(x:iaie and joint venture inveslecs. It does so for the six years following the intrtxluction of FRS 9: AssovUiWs ami Join! Ventures, which forced a substantial increase in such disclosures by UK firms. Since ihe increased disclosure requirements were pa...

This study empirically evaluates the certification and value-added roles of reputable venture capitalists (VCs). Using a novel sample of entrepreneurial start-ups with multiple financing offers, I analyze financing offers made by competing VCs at the first professional round of start-up funding, holding characteristics of the start-up fixed. Offers made by VCs with a high reputation are three t...

Our central proposition is that monitoring costs increase with physical distance, and hence, direct investments located further from the foreign investor’s home base should be more likely formed as joint ventures. Tests on a data set of Taiwanese direct investments in Mainland China provide robust support to the hypothesis. A project that was located 1000 kilometers further away was 13-17% more...

Though there is a body of theoretical literature on research joint venture (RJV) participation facilitating collusion, empirical tests are rare. Even more so, there are few empirical tests on the general theme of collusion. This note tries to fill this gap by assuming a correspondence between the stability of research joint ventures and collusion. By using data from the US National Cooperation ...