In this paper, we analyze the investment and divestment patterns of different types of venture capitalists. Using a data set embracing all venture-backed IPOs that occurred on Germany’s Neuer Markt we investigate whether the governance structures, objectives, abilities and track records of different types of venture capitalists have a decisive influence on their behavior. Our main finding is th...

A strong private equity market is a cornerstone for commercialization and innovation in modern economies. However, substantial differences exist in the relative amounts raised and invested in private equity across European countries. We investigate the macro-determinants of private equity investment in Europe, focusing on the comparison between CEE and Western European countries. Our estimation...

The Wider Economic Impacts of High-Skilled Migrants: A Survey of the Literature In recent years, the economics of migration literature has shown a substantial growth in papers exploring host country impacts beyond the labour market. Specifically, researchers have begun to shift their attention from labour market and fiscal changes, towards exploring what we might call ‘the wider effects of migr...

In this paper, we use the recent collapse of the ARS market as the laboratory to study issues on the fragility of financial innovations and systemic risks. We find strong evidence of investor runs for liquidity—partly caused by a self-fulfilling panic—and coordination failures among major broker-dealers in providing liquidity support. The two forces amplify each other dynamically, resulting in ...

This paper analyzes the change in the capital structure behavior in a sample of Spanish venture capital (VC) backed firms after the first capital infusion. We find that VC investors contribute to unlisted growing firms in the attraction of other long term sources of funds to continue their growth process. Our results show significant changes in determinants such as tangibility, size and profita...

The internet revolution is said to foster integration of the market for financial services, since consumers are able to shop around at all companies worldwide and firms can easily offer their services on the internet at a minimum of distribution cost. However, the European market for online brokerage displays a different picture. Prices paid for online brokerage differ substantially across Euro...

Credit ratings affect firms’ access to capital and investment choices. We show that the identity of the credit analysts covering a firm significantly affects the firm’s rating, comparing ratings for the same firm at the same time across agencies. Analyst effects account for 30% of the within variation in ratings. Moreover, the rating biases of analysts carry through to credit spreads on the rat...

It has generally been assumed that the potential commission revenue is an important determinant of a sell-side analyst's decision of what "rms to cover and what information to publicly release. However, because stock volume has not been disaggregated on a brokerage-"rm level, uncertainty remains regarding the economic importance of the relation between analyst coverage and brokerage-"rm volume....

We examine the effects of rivals’ earnings news during the waiting period of an IPO’s going public process on IPO pricing and completion decision, and investigate the implication of these effects for post-IPO operating performance. We find that a signal-to-noise measure of rivals’ earnings news has significantly negative valuation effects on both price revision and initial return for completed ...

This article proposes that venture capitalists adds value within portfolio firms by transferring information about senior managers across firms — A valuable feature since it is difficult to transfer information about senior managers in small firms in a systematic fashion. This transfer occurs on a significant scale because venture capitalists operate a network, within which they are involved in...