Compared to mature investment firms, first-time funds in private equity lack an investment and performance track record, and require alternative signals to establish initial trust with investors. The paper finds that investors allocate more capital to first-time funds if they have a higher share of managers with relevant experience, such as from another private equity group or a bank. In partic...

This paper analyzes the effect of public R&D subsidies on firms’ private R&D investment per employee and new product sales in German manufacturing. Parametric and semiparametric two-step selection models are applied to this evaluation problem. The results show that the average treatment effect on the treated firms’ R&D intensity is positive. The estimated effects are robust with respect to the ...

In this article, we investigate risk return characteristics and diversification benefits when private equity is used as a portfolio component. We use a unique dataset describing 642 US-American portfolio companies with 3620 private equity investments. Information about precisely dated cash flows at the company level enables for the first time a cash flow equivalent and simultaneous investment s...

this paper extends endogenous growth models through augmenting it with government budget and oil revenues as well as the effect of public investment efficiency on long run growth of private and government consumption and import for an oil producing economy. based on the extracted model, the optimal growth rate of government current expenditure (or consumption) has a positive relation with the e...

Preferential tax is the main policy tools for the world to incentives its enterprise to increase its investment in the research and development, and it’s also the government to change its way of support and encouragement to the innovation of science and technology of the private enterprise. How to measure the incentive effect of the tax on the scientific and technological innovation of the priv...

a r t i c l e i n f o Keywords: Place-based programs Business incentives Tax credits Low-income neighborhoods Regression discontinuity This paper examines the effects of investment subsidized by the federal government's New Markets Tax Credit (NMTC) program, which provides tax incentives to encourage private investment in low-income neighborhoods. I identify the impacts of the program by taking...

This paper aims to contribute to the understanding of the factors that determine fundraising and investment in the private equity market in Europe. These are analysed separately, since the lags faced in this activity determine the existence of two separate markets. As a result, private equity institutions deal with different agents, namely investors (fundraising) and firms (investment), whose l...

We consider renegotiation of social earnings insurance arrangements by majority voting in an economy where ex-ante identical individuals make unobservable private investments in education. We show that voting-based renegotiation can result in a higher expected level of investment in comparison to the case where social insurance is determined by an appointed social planner. We also find that, wi...

We analyze the trade-off faced by growth firms between hoarding cash (and delaying investment) and incurring dilution from external financing. Such nonprecautionary hoarding features a self-reinforcing effect: firms with better investment opportunities hoard less, yet grow successful and cash-rich more quickly. We show that non-precautionary hoarding affects the choice between public and privat...