Financial Contracting Theory Meets the Real World: An Empirical Analysis of Venture Capital Contracts

Clicks: 1
ID: 292146
2003
Article Quality & Performance Metrics
Overall Quality
Not rated
Combines reader engagement with the AI quality analysis. This article has not been analysed, so there is no overall score — reader engagement is measured and shown alongside.
AI Quality Assessment
Not analyzed
Readership in this journal

Ranked #125 of 195 articles by views in The Review of Economic Studies

Most read Least read

Bar heights use a square-root scale. Only the 120 most-read articles are drawn; the journal has 195 in total.

Mint this article as an NFT
Not yet minted

Create a permanent, verifiable on-chain record of this article on the Scimatic Network. The NFT is held in your Journament account, and you can withdraw it to your own wallet at any time.

5 SUSD one-off · no wallet required
Abstract
We compare the characteristics of real-world financial contracts to their counterparts in financial contracting theory. We do so by studying the actual contracts between venture capitalists (VCs) and entrepreneurs. The distinguishing characteristic of VC financings is that they allow VCs to separately allocate cash flow rights, board rights, voting rights, liquidation rights, and other control rights. We describe and measure these rights. We then interpret our results in relation to existing financial contracting theories. We also describe the interrelation and the evolution across financing rounds of the different rights.
Reference Key
openalex_W2913527708 Use this key to autocite in the manuscript while using SciMatic Manuscript Manager or Thesis Manager
Authors Steven N. Kaplan, Per Strömberg
Journal The Review of Economic Studies
Year 2003
DOI
10.1111/1467-937x.00245
URL
Keywords Keywords not found

Citations

No citations found. To add a citation, contact the admin at info@scimatic.org

No comments yet. Be the first to comment on this article.