Venture Capital Supply and Accounting Information System Development
AbstractThis study examines the origins and characteristics of information systems of entrepreneurial firms going through that stage in their life cycle when serious growth ambitions are fuelled by an infusion of external capital. It does so by investigating the consequences of venture capital intervention for the entrepreneurial firm as regards changing characteristics of its accounting information system (AIS). Data are presented on twelve investor-investee ‘dyads’ (i.e. matched pairs) in the UK venture capital industry. Weight of evidence is adduced in favour of five propositions, relating to: monitoring demands; internal change within the investee firm; the variety, extent and frequency of information change; the use of enhanced information for decision support; and the universalist influence of the investor. This evidence has implications for practitioners, as well as for future research on AIS development.
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Bibliographic InfoPaper provided by Centre for Research into Industry, Enterprise, Finance and the Firm in its series CRIEFF Discussion Papers with number 9616.
Date of creation: Oct 1996
Date of revision:
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Postal: School of Economics and Finance, University of St. Andrews, Fife KY16 9AL
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More information through EDIRC
Venture Capital; Accounting Information System (AIS); Entrepreneurial Firm;
Find related papers by JEL classification:
- G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
- L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
- M41 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - Accounting
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- Gavin C Reid, 1994. "Early Life-Cycle Behaviour of Micro-Firms in Scotland," CRIEFF Discussion Papers 9410, Centre for Research into Industry, Enterprise, Finance and the Firm.
- Gompers, Paul A, 1995. " Optimal Investment, Monitoring, and the Staging of Venture Capital," Journal of Finance, American Finance Association, vol. 50(5), pages 1461-89, December.
- Wright, Mike & Thompson, Steve & Robbie, Ken, 1992. "Venture capital and management-led, leveraged buy-outs: A European perspective," Journal of Business Venturing, Elsevier, vol. 7(1), pages 47-71, January.
- Falconer Mitchell & Gavin C Reid & Nicholas G Terry, 1994. "Post Investment Demand for Accounting Information by Venture Capitalists," CRIEFF Discussion Papers 9424, Centre for Research into Industry, Enterprise, Finance and the Firm.
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