This study investigates the differing role of enforcement on the formation of venture capital (VC) syndication networks. We conjecture that public enforcement, with strong investigative powers against any syndicate member, discourages the formation of denser syndication networks due to misconduct risk by a member. By contrast, private enforcement, with strong disclosure and liability standards, enables denser syndication networks, through clear liability rules, standardized securities contracts and cost-sharing amongst syndicate members. Our VC data from 31 countries show a negative impact of public enforcement on VC networks and partially support the positive impact of private enforcement depending on cultural conditions. --Authors indicated in alphabetical order; Publication Date (online) on Dec. 2021; Printed version: June 2022--
Misconduct Risks, Legal Enforcement and Venture Capital Networks / Douglas J. Cumming; Ali Mohammadi; Simona Zambelli. - In: EUROPEAN FINANCIAL MANAGEMENT. - ISSN 1354-7798. - STAMPA. - 28:(2022), pp. 607-650. [10.1111/eufm.12346]
Misconduct Risks, Legal Enforcement and Venture Capital Networks
Simona Zambelli
2022
Abstract
This study investigates the differing role of enforcement on the formation of venture capital (VC) syndication networks. We conjecture that public enforcement, with strong investigative powers against any syndicate member, discourages the formation of denser syndication networks due to misconduct risk by a member. By contrast, private enforcement, with strong disclosure and liability standards, enables denser syndication networks, through clear liability rules, standardized securities contracts and cost-sharing amongst syndicate members. Our VC data from 31 countries show a negative impact of public enforcement on VC networks and partially support the positive impact of private enforcement depending on cultural conditions. --Authors indicated in alphabetical order; Publication Date (online) on Dec. 2021; Printed version: June 2022--File | Dimensione | Formato | |
---|---|---|---|
CMZ-EFM online version Dec 2021 Misconduct risks & networks.pdf
Accesso chiuso
Descrizione: PDF electronic version EFM 2021
Tipologia:
Pdf editoriale (Version of record)
Licenza:
Tutti i diritti riservati
Dimensione
2.36 MB
Formato
Adobe PDF
|
2.36 MB | Adobe PDF | Richiedi una copia |
Cumming-Zambelli (2022) - Misconduct risks legal enforcement and venture capital networks.pdf
Accesso chiuso
Descrizione: PDF print version (June 2022)
Tipologia:
Pdf editoriale (Version of record)
Licenza:
Tutti i diritti riservati
Dimensione
2.36 MB
Formato
Adobe PDF
|
2.36 MB | Adobe PDF | Richiedi una copia |
Data Screenshot 2023-09-28 181542.png
accesso aperto
Descrizione: Month/Year of Publication - Mese/Anno pubblicazione
Tipologia:
Altro
Licenza:
Tutti i diritti riservati
Dimensione
389.74 kB
Formato
image/png
|
389.74 kB | image/png |
I documenti in FLORE sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.