Should Investors Bet on the Jockey or the Horse? Evidence from the Evolution of Firms from Early Business Plans to Public Companies

By Steven N. Kaplan, Berk A. Sensoy, Per Strömberg. 2009

462 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/1b04bcaf222bb75c8d66b3e00441f26f7deb6bb7

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Citations in the corpus

Doing More with Less: Innovation Input and Output in Family Firms (2016, unknown): “Indeed, prior research has often emphasized the unique human capital of founder CEOs (Colombo & Grilli, 2005; Gimmon & Levie, 2010; Kaplan, Sensoy, & Str¨omberg, 2009; Zingales, 2000).”
Venture Capital and Other Private Equity: A Survey (2011, unknown): “How do VCs screen startups before committing capital, and what kind of companies do they tend to fund? (Kaplan et al. 2009) examine 50 VC-backed companies that eventually went public, and find that business lines remain stable from early business plan to IPO, while management is frequently replaced.”
It Ain’t Broke: The Past, Present, and Future of Venture Capital (2010, unknown): “For a detailed description and analysis of VC screening, see Kaplan and Strömberg (2004). 4. For a detailed description and analysis of VC contracts, see Kaplan and Strömberg (2003). 5.”
Performance persistence in entrepreneurship (2010, unknown): “As has been shown by Sorensen (2007), Kaplan and Schoar (2005), Gompers, Kovner, Lerner, and Scharfstein (2008), and Hochberg, Ljungqvist, and Lu (2007), companies that are funded by more experienced (top-tier) venture capital firms are more likely to succeed.”
How do venture capitalists make decisions? (2020, background): “In fact, Kaplan and Strömberg (2001) and Gompers and Lerner (2001) argue that VCs are particularly successful at solving an important problem in market economies—connecting entrepreneurs with good ideas (but no money) with investors who have money (but no ideas).”
Investment Cycles and Startup Innovation (2013, unknown): “…markets and financing strategy (Hellmann and Puri, 2000), the effect of networks (Hochberg, Ljungqvist, and Lu, 2007), or the question of whether investors pick the jockey or the horse (Kaplan, Sensoy, and Stromberg, 2009), could all vary based on the where investors are in the investment cycle.”
Founder's human capital, external investment, and the survival of new high-technology ventures (2010, background): “While its importance is likely to diminish over time as technology advances and other staff take on technology roles in the venture (Kaplan et al., 2009), it appears to be a critical survival factor in a venture’s early stages.”
Managing the Unknowable (2015, background): “Work on decision making when risks are unknowable has primarily been conducted in behavioral finance, and scholars focus on the difference between uncertainty and unknowability (cf. Plous, 1993; Hastie and Dawes, 2009; Kahneman, 2011).”
Anatomy of Corporate Borrowing Constraints* (2020, background): “First, the structure of the firm can generate substantial value, so the boundary of the firm is meaningful and the whole is more than the sum of the pieces (Williamson, 1975; Grossman and Hart, 1986; Kaplan et al., 2009). Second, the firm may derive value from human capital (Kiyotaki and Moore, 1997”
Entrepreneurship as Experimentation (2014, unknown): “These rights appear to be exercised often (for example, Hellman and Puri, 2000; Kaplan et al., 2009; Tian, 2011).”