Adverse Selection and Capital Structure: Evidence from Venture Capital

By Douglas J. Cumming. 2006

154 citations recorded by the source corpus.

Subfields: Accounting, Management of Technology and Innovation

View Paper: https://www.semanticscholar.org/paper/221be262f0a0bce6e0eddd664760f5f6fab3676d

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In Management of Technology and Innovation

Citations in the corpus

Determinants of Cross-Border Venture Capital Investments in Emerging and Developed Economies: The Effects of Relational and Institutional Trust (2015, unknown): “It is not surprising, therefore, that the creation of flourishing venture capital markets has become an integral goal of recent innovation-related public policies in many developed and emerging economies (Beck et al. 2008; Cumming 2006a; Kortum and Lerner 2000).”
The impact of venture capital financing method on SME performance and internationalization (2011, background): “Cumming (2006) confirm that the most venture capital transactions include a convertible security.”
Small and Medium-Sized Enterprises Financing: A Review of Literature (2013, background): “A study by Cumming (2006) reached a broadly similar conclusion stating that venture capital syndication significantly mitigates adverse selection problems. Additionally, Lerner (1994) suggested that adverse selection problem can be efficiently mitigated in the presence of high information asymmetry ”
The patterns of venture capital investment in Europe (2015, result): “VC requires a business-friendly legal environment (Armour and Cumming 2006).”
Revitalizing Entrepreneurship: The Search for New Research Opportunities (2011, unknown): “Cumming (2006) argues that venture capital syndication networks significantly mitigate problems of adverse selection; that is, ‘reducing the risk of financing a lemon’.”
The role of venture capital in the emerging entrepreneurial finance ecosystem: future threats and opportunities (2019, background): “According to pecking order theory, after the choice of internal financing represented by the “insider seed money” coming from the entrepreneurs and the “family and friends tranche”, venture capital has – since its origins in the aftermath of the end of World War II – been the dominant source of earl”
Assessing the impact of public venture capital programmes in the United Kingdom: : Do regional characteristics matter? (2015, unknown): “As shown by the graph, the UK venture capital industry shares the wave-trend characterizing also other VC markets, like the US (Lerner, 2002a, 2002b), Canada (Cumming and MacIntosh, 2006), Europe (Armour and Cumming, 2006) and Australia (Cumming, 2007).”
Governance, ownership structure, and performance of IPO firms: The impact of different types of private equity investors and institutional environments (2009, background): “Comparative studies have documented that VCs in countries with a common law tradition more likely use convertible preferred stock that shifts control rights to investors depending on the performance of the venture (Mayer, Schoors, Yafeh, 2005; Lerner and Schoar, 2005; Cummings, 2006), and other cont”