The Importance of Trust for Investment: Evidence from Venture Capital

• 成果类型: Article
• 署名作者: Bottazzi, Laura; Da Rin, Marco; Hellmann, Thomas
• 署名单位: University of Bologna; Bocconi University; Tilburg University; University of Oxford; National Bureau of Economic Research; European Corporate Governance Institute
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhw023
• 发表日期: 2016
• 页码: 2283
• 关键词: CROSS-COUNTRY; performance; networks; BUSINESS; FIRMS; MODEL

摘要

We examine the effect of trust in venture capital. Our theory predicts a positive relationship of trust with investment, but a negative relationship with success. Using a hand-collected dataset of European venture capital deals, we find that the Eurobarometer measure of trust among nations positively predicts venture capital firms' investment decisions, but that it has a negative correlation with successful exits. Our theory also predicts that earlier stage investments require higher trust, that syndication is more valuable in low-trust situations, and that higher trust investors use more contingent contracts. The empirical evidence supports these predictions.