Ethnic matching in the U.S. venture capital market ¬リニ
نویسندگان
چکیده
Field Editor: G. Cassar Wedocument the role of entrepreneurial founder and venture capital (VC) partner co-ethnicity in shaping investment relationships. Co-ethnicity increases the likelihood that a VC firm invests in a company. Conditional on investment, co-ethnicity strengthens the degree of involvement by raising the likelihood of VC board of director involvement and increasing the size and scope of investment. These results are consistentwith trust and social-network basedmechanisms. Shared ethnicity in our sample is associatedwithworse investment outcomes asmeasured by investment liquidity, however, which our results suggest might stem from looser screening and/or corporate governance. © 2014 Elsevier Inc. All rights reserved. JEL classification: M13 L26 G24
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