Convertible preferred stock in venture capital financing

We develop a model in which cash-constrained entrepreneurs seek a venture capitalist (VC) to finance a new firm. Costly monitoring is employed by VCs to reduce entrepreneurial moral hazard. When monitoring reveals poor performance, VCs want to punish the entrepreneur with liquidation. However, when...

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Manylion Llyfryddiaeth
Prif Awduron: Ippolito, F, Boccini
Fformat: Working paper
Cyhoeddwyd: University of Oxford 2006

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