The Impact of Venture Capital Monitoring

• 成果类型: Article
• 署名作者: Bernstein, Shai; Giroud, Xavier; Townsend, Richard R.
• 署名单位: Stanford University; Massachusetts Institute of Technology (MIT); National Bureau of Economic Research; Center for Economic & Policy Research (CEPR); Dartmouth College
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12370
• 发表日期: 2016
• 页码: 1591-1622
• 关键词: start-up firms; convertible securities; patent citations; Private Firms; INVESTMENT; INNOVATION; CONTRACTS; finance; MARKET; CONFIDENTIALITY

摘要

We show that venture capitalists' (VCs) on-site involvement with their portfolio companies leads to an increase in both innovation and the likelihood of a successful exit. We rule out selection effects by exploiting an exogenous source of variation in VC involvement: the introduction of new airline routes that reduce VCs' travel times to their existing portfolio companies. We confirm the importance of this channel by conducting a large-scale survey of VCs, of whom almost 90% indicate that direct flights increase their interaction with their portfolio companies and management, and help them better understand companies' activities.