Local Bias in Venture Capital Investments

By Douglas J. Cumming, Na Dai. 2010

453 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/a4c319d9bb9f40f840a6c32f3180cac20333171c

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Citations in the corpus

Success in Global Venture Capital Investing: Do Institutional and Cultural Differences Matter? (2014, unknown): “…our analyses, we also control for the geographical distance between the nations of the company and its lead VC investor using the average latitude and longitude data for the two countries involved (Coval and Moskowitz (1999), (2001), Cumming and Dai (2010), Chemmanur, Hull, and Krishnan (2011)).”
Assessing the impact of public venture capital programmes in the United Kingdom: : Do regional characteristics matter? (2015, unknown): “In a similar vein, private venture capital investments tend to be strongly concentrated in a limited number of economically advanced regions, characterized by the presence of promising entrepreneurial opportunities (Cumming and Dai, 2009; Powell et al., 2001; Sorenson and Stuart, 2001).”
The Study of Bias in Entrepreneurship (2017, background): “Nevertheless, many papers on entrepreneurial bias have also discussed the possible benefits of biases (c.f., Cable & Shane, 1997; Coval & Moskowitz, 1999; Cumming & Dai, 2010; Sandri et al., 2010).”
Determinants of Cross-Border Venture Capital Investments in Emerging and Developed Economies: The Effects of Relational and Institutional Trust (2015, unknown): “Frequent and open interaction between investor and investee within close proximity appears necessary for these investments to succeed (Cumming and Dai 2010; Engel and Keilbach 2007; Sapienza 1992; Sapienza et al. 1996).”
The Causes and Consequences of Venture Capital Stage Financing (2011, unknown): “Cumming and Dai (2010) find that VCs exhibit strong local bias in their investments.”
Information asymmetries, agency costs and venture capital exit outcomes (2008, unknown): “…Gompers and Lerner 1999; Lockett and Wright 2001); and these aspects are typically enhanced by geographic proximity (see Cumming and Johan 2006; Cumming and Dai 2007); and (2) certify the quality of the entrepreneurial firm (Barry et al. 1990; Megginson and Weiss 1991; Lerner 1994; Gompers…”
The liability of foreignness in capital markets: Sources and remedies (2011, unknown): “To protect their reputation and networks VCs favor local rather than distant ventures (Cumming & Dai, 2010).”
Equity Crowdfunding and Governance: Toward an Integrative Model and Research Agenda (2019, unknown): “They also prefer to invest locally (Cumming and Dai, 2010) and rely on preexisting direct and indirect ties between themselves and entrepreneurs to reduce informational asymmetry (Shane and Cable, 2002).”
Exposed: Venture Capital, Competitor Ties, and Entrepreneurial Innovation (2014, background): “First, venture capital tends to be a local business, and VCs primarily invest in nearby entrepreneurial firms (Chena, Gompers, Kovner, & Lerner, 2010; Cumming & Dai, 2010).”
Entrepreneurial uncertainty during the Covid-19 crisis: Mapping the temporal dynamics of entrepreneurial finance (2020, background): “VC investors often use their personal networks to elicit deals and then oversee their investee firms by staying “close to their money” (Shane and Cable, 2002; Cumming and Dai, 2010; Colombo et al., 2019).”