Comparative Advantages of Public Loan and Public Equity Schemes in Venture Capital Markets

Arbeitspapier

Using an agency framework, this paper examines advantages of offering venture capitalists a choice between public equity and loan schemes. Both schemes can be used to promote venture capital investments in hightechnology enterprises since they encourage inexperienced venture capitalists to accumulate experience. However, under both schemes, experienced venture capitalists save on management support. This paper shows that offering venture capitalists a choice between these two schemes can lead to a positive self-selection. Inexperienced venture capitalists choose public equity under which they have higher incentives to enter the market. Experienced venture capitalists choose public loans under which they have lower incentives to save on their management support.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Kiel Working Paper ; No. 1118

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Transactional Relationships; Contracts and Reputation; Networks ; Financial Institutions and Services: Government Policy and Regulation ; Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies ; Asymmetric and Private Information; Mechanism Design
• Thema: public equity schemes ; public loan schemes ; venture capital ; Risikokapital ; Öffentliche Kapitalbeteiligung ; Öffentliche Kreditvergabe ; Subvention ; Unternehmensgründung ; Finanzierungstheorie ; Agency Theory ; Theorie ; Deutschland

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Schertler, Andrea
• Ereignis: Veröffentlichung
• (wer): Kiel Institute for World Economics (IfW)
• (wo): Kiel
• (wann): 2002

Weitere Informationen

• Handle: http://hdl.handle.net/10419/17782
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ