Cross-Border Venture Capital Valuation: Business-Cycle, Institutional Factors, and Distance

What Lures Cross-Border Venture Capital Inflows?

The change in the business model of venture capitalists from investing locally towards investing across borders started to intensify in the late 1990s. According to a dataset of European and NorthAmerican countries, we find that countries with higher expected growth and higher lagged stock market returns receive larger net cross-border venture capital inflows. Thus, portfolio companies located ...

Do networks of financial intermediaries help reduce local bias? Evidence from cross-border venture capital exits

Field Editor: N. Coviello Contributing to the literature on local bias and financial networks, we examine how direct and indirect network ties of financial intermediaries mitigate the effects of distance and preference for local investments. In our analysis of cross-border venture capital exits, we find that proximity within networks facilitates cross-border transactions, which suggests that ne...

CEP 16-09 Entrepreneurship and the Business Cycle: Stylized Facts from U.S. Venture Capital Activity

Does Distance Still Matter? Evidence from the Venture Capital Market

We use the venture capital market to examine two phenomena: “grandstanding” by relatively inexperienced venture capital firms and the effect of proximity on soft information production. We show that these phenomena are closely related. Inexperienced VC firms—those with the strongest incentives to grandstand— tend to match with young and small companies within close proximity, presumably to enha...

Exploring the Impact of Institutional Distance on Cross-Border iOS Adoption and Assimilation

We set out in this study to analyse the impact of institutional distance on the cross-border interorganizational system (IOS) adoption and assimilation. This study begins with an introduction of two crucial constructs, i.e. institutional distance and interdependence, and then distinguishes IOS adoption from IOS assimilations. These static portraits are the basis by which we explore the relation...