English, Article, Journal or magazine article edition: Evolution of Decision and Control Rights in Venture Capital Contracts: An Empirical Analysis Uwe Walz; Carsten Bienz

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/45040
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Evolution of Decision and Control Rights in Venture Capital Contracts: An Empirical Analysis
Author
  • Uwe Walz
  • Carsten Bienz
Physical Description
  • preprint
Notes
  • We analyze the structure and evolution of the allocation of decision and control rights in venture capital contracts by using a sample of 464 contracts between venture capitalists (VC) and portfolio firms from Germany. We focus on the evolution of control and decisions rights along three time dimensions: the point in time when the contract was signed, the expected duration of the contract and the actual duration of the relationship. We show that contracts are not static but that control rights are adjusted along all three time dimensions. First, we observe a change in the structure but not in the level of the VC’s control rights during the relationship between the VC and the portfolio firm. While venture capitalists return superfluous operational rights to entrepreneurs, they gain (valuable) exit rights during the course of the relationship. Second, we show that the shorter the expected length of the VC’s engagement the more control rights are allocated to the hands of the VC. Finally, we observe that learning took place in the German VC market. Keywords: venture capital, corporate governance, empirical contract theory, control rights,exit rights.JEL classification: G24, G32, D86, D80, G34.
  • RePEc:fmg:fmgdps:dp585
Language
  • English
Contributed by
OAIster

Get this edition

Other links

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment