A property rights perspective on venture capital investment decisions

Dimo Dimov, Eric Gedajlovic

Research output: Contribution to journalArticlepeer-review

30 Citations (SciVal)

Abstract

To understand how ownership differences influence specific types of strategic decisions, we examine the investment decisions of venture capital (VC) firms, for which a variety of property rights arrangements exist. We describe how VC firms are characterized by important differences in how and to whom various property rights are allocated. On this basis, we develop a series of hypotheses regarding differences in the range and types of investment opportunities pursued by private, corporate, and bank affiliated VC firms. Evaluating our hypotheses using data on investments carried out by 3557 firms, we find that these types of firm perform distinct roles in the ecology of VC financing.
Original languageEnglish
Pages (from-to)1248-1271
Number of pages24
JournalJournal of management studies
Volume47
Issue number7
Early online date25 Nov 2009
DOIs
Publication statusPublished - 1 Nov 2010

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