Journal
ENTREPRENEURSHIP THEORY AND PRACTICE
Volume 40, Issue 1, Pages 25-48Publisher
SAGE PUBLICATIONS INC
DOI: 10.1111/etap.12104
Keywords
-
Categories
Ask authors/readers for more resources
This article provides a comprehensive theoretical and empirical literature review of venture capital contracts. This outlines the differences between theoretical and practical uses of contract designs; that is, (1) how does the choice of securities give rise to different adverse selection problems in terms of attracting different types of entrepreneurial companies; how does the choice of securities in conjunction with cash flow and control rights provisions affect (2) the effort levels by the entrepreneur and the investor; and (3) ultimately affect entrepreneurial outcomes. This article highlights the major discrepancies between theory and practice and points out potential avenues for further research.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available