Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/25412
Authors: 
Cumming, Douglas
Schmidt, Daniel
Walz, Uwe
Year of Publication: 
2004
Series/Report no.: 
CFS Working Paper 2004/17
Abstract: 
We analyze governance with a dataset on investments of venture capitalists in 3848 portfolio firms in 39 countries from North and South America, Europe and Asia spanning 1971-2003. We find that cross-country differences in Legality have a significant impact on the governance structure of investments in the VC industry: better laws facilitate faster deal screening and deal origination, a higher probability of syndication and a lower probability of potentially harmful co-investment, and facilitate board representation of the investor. We also show better laws reduce the probability that the investor requires periodic cash flows prior to exit, which is in conjunction with an increased probability of investment in high-tech companies.
Subjects: 
Venture Capital
Corporate Governance
Syndication
Entrepreneurial Finance
JEL: 
G24
G31
G32
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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