When are venture capital projects initiated?
نویسندگان
چکیده
Article history: Received 21 November 2008 Received in revised form 21 July 2009 Accepted 8 August 2009 Available online 23 June 2010 This paper examines how public market information relates to the initiation of venture capital projects. Analysis of venture capital investments in the U.S. between 1980 and 2007 indicates that venture capitalists tend to defer new investment projects in target industries with substantial market volatility. This delay effect of market volatility is reduced if the target industry experiences high sales growth or if competition among venture capitalists is intense in the target industry. The paper provides further evidence to corroborate the view that venture capitalists rationally respond to market shifts in their investment decisions. © 2009 Elsevier Inc. All rights reserved.
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