Generale, Andrea
[Verfasser:in]
;
Del Colle, Diana Marina
[Sonstige Person, Familie und Körperschaft];
Finaldi Russo, Paolo
[Sonstige Person, Familie und Körperschaft]
The Causes and Consequences of Venture Capital Financing
Erschienen in:Bank of Italy Economic Research Paper ; No. 584
Umfang:
1 Online-Ressource (48 p)
Sprache:
Nicht zu entscheiden
DOI:
10.2139/ssrn.901949
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 2006 erstellt
Beschreibung:
The analysis of the determinants and the effects on firm performance of venture capital finance for a sample of Italian enterprises indicates that small, young and more innovative firms are more likely to be financed by a venture capitalist. Our results confirm that venture capital can help reduce financial constraints for firms that are more difficult for external investors to evaluate. We also show that larger firms resort to venture capitalists when their indebtedness with banks is high and we find evidence that venture capital financing is more frequent after periods of high growth and investment, a result that points to the advisory role of the venture capitalist. A novel result emerges: venture capital also finances firms with multiple banking relationships. In the presence of multiple lending, banks could have greater difficulty monitoring firms with asymmetric information; moreover, if firms default, banks are likely to have a weaker bargaining position. In these cases, the amount of bank credit is probably near its limit and firms need to resort to venture capital, a contract that reduces the amount of guarantees needed to access external finance