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Contracting, signaling, and moral hazard: a model of entrepreneurs, 'angels,' and venture capitalists


  • Elitzur, Ramy
  • Gavious, Arieh


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  • Elitzur, Ramy & Gavious, Arieh, 2003. "Contracting, signaling, and moral hazard: a model of entrepreneurs, 'angels,' and venture capitalists," Journal of Business Venturing, Elsevier, vol. 18(6), pages 709-725, November.
  • Handle: RePEc:eee:jbvent:v:18:y:2003:i:6:p:709-725

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    References listed on IDEAS

    1. Manigart, Sophie & De Waele, Koen & Wright, Mike & Robbie, Ken & Desbrieres, Philippe & Sapienza, Harry J. & Beekman, Amy, 2002. "Determinants of required return in venture capital investments: a five-country study," Journal of Business Venturing, Elsevier, vol. 17(4), pages 291-312, July.
    2. Chan, Yuk-Shee, 1983. " On the Positive Role of Financial Intermediation in Allocation of Venture Capital in a Market with Imperfect Information," Journal of Finance, American Finance Association, vol. 38(5), pages 1543-1568, December.
    3. Darwin V. Neher, 1999. "Staged Financing: An Agency Perspective," Review of Economic Studies, Oxford University Press, vol. 66(2), pages 255-274.
    4. Bergemann, Dirk & Hege, Ulrich, 1998. "Venture capital financing, moral hazard, and learning," Journal of Banking & Finance, Elsevier, vol. 22(6-8), pages 703-735, August.
    5. Zacharakis, Andrew L. & Shepherd, Dean A., 2001. "The nature of information and overconfidence on venture capitalists' decision making," Journal of Business Venturing, Elsevier, vol. 16(4), pages 311-332, July.
    6. Cooper, Ian A & Carleton, Willard T, 1979. "Dynamics of Borrower-Lender Interaction: Partitioning Final Payoff in Venture Capital Finance," Journal of Finance, American Finance Association, vol. 34(2), pages 517-529, May.
    7. Zacharakis, Andrew L. & Meyer, G. Dale, 2000. "The potential of actuarial decision models: Can they improve the venture capital investment decision?," Journal of Business Venturing, Elsevier, vol. 15(4), pages 323-346, July.
    8. Mason, Colin M. & Harrison, Richard T., 2002. "Is it worth it? The rates of return from informal venture capital investments," Journal of Business Venturing, Elsevier, vol. 17(3), pages 211-236, May.
    9. Sahlman, William A., 1990. "The structure and governance of venture-capital organizations," Journal of Financial Economics, Elsevier, vol. 27(2), pages 473-521, October.
    10. Jain, Bharat A., 2001. "Predictors of performance of venture capitalist-backed organizations," Journal of Business Research, Elsevier, vol. 52(3), pages 223-233, June.
    11. Gifford, Sharon, 1997. "Limited attention and the role of the venture capitalist," Journal of Business Venturing, Elsevier, vol. 12(6), pages 459-482, November.
    12. Higashide, Hironori & Birley, Sue, 2002. "The consequences of conflict between the venture capitalist and the entrepreneurial team in the United Kingdom from the perspective of the venture capitalist," Journal of Business Venturing, Elsevier, vol. 17(1), pages 59-81, January.
    13. Raphael Amit & Lawrence Glosten & Eitan Muller, 1990. "Entrepreneurial Ability, Venture Investments, and Risk Sharing," Management Science, INFORMS, vol. 36(10), pages 1233-1246, October.
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    Cited by:

    1. repec:eee:eecrev:v:101:y:2018:i:c:p:459-478 is not listed on IDEAS
    2. Gimmon, Eli & Levie, Jonathan, 2010. "Founder's human capital, external investment, and the survival of new high-technology ventures," Research Policy, Elsevier, vol. 39(9), pages 1214-1226, November.
    3. Hsu, David H., 2007. "Experienced entrepreneurial founders, organizational capital, and venture capital funding," Research Policy, Elsevier, vol. 36(5), pages 722-741, June.
    4. Urbig, Diemo & Weitzel, Utz & Rosenkranz, Stephanie & Witteloostuijn, Arjen van, 2012. "Exploiting opportunities at all cost? Entrepreneurial intent and externalities," Journal of Economic Psychology, Elsevier, vol. 33(2), pages 379-393.
    5. repec:kap:jtecht:v:42:y:2017:i:5:d:10.1007_s10961-016-9476-5 is not listed on IDEAS
    6. Mircea Epure & Martí Guasch, 2015. "Information asymmetry reduction in opaque contexts: Evidence from debt and outside equity financing in early stage firms," Economics Working Papers 1546, Department of Economics and Business, Universitat Pompeu Fabra, revised May 2017.
    7. Herrera-Echeverri Hernán & Haar Jerry & Estevez-Bretón Juan Benavides, 2014. "Foreign Investment, Institutional Quality, Public Expenditure, and Activity of Venture Capital Funds in Emerging Market Countries," Global Economy Journal, De Gruyter, vol. 14(2), pages 1-36, April.
    8. Hoenig, Daniel & Henkel, Joachim, 2015. "Quality signals? The role of patents, alliances, and team experience in venture capital financing," Research Policy, Elsevier, vol. 44(5), pages 1049-1064.
    9. repec:gam:jsusta:v:9:y:2017:i:10:p:1815-:d:114396 is not listed on IDEAS
    10. Hoenen, Sebastian & Kolympiris, Christos & Schoenmakers, Wilfred & Kalaitzandonakes, Nicholas, 2014. "The diminishing signaling value of patents between early rounds of venture capital financing," Research Policy, Elsevier, vol. 43(6), pages 956-989.
    11. Petra A. Nylund & Boyd Cohen, 0. "Collision density: driving growth in urban entrepreneurial ecosystems," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-20.
    12. Bruno S. Frey & Jana Gallus, 2014. "Awards are a Special Kind of Signal," CREMA Working Paper Series 2014-04, Center for Research in Economics, Management and the Arts (CREMA).
    13. Wu Zhenyu & Yuan Wenlong & Wei Xueqi, 2012. "The Effects of New Ventures' Resource Strategies on Angels' Investing Outcomes: Big Gains and Big Losses in Angel Investments," Entrepreneurship Research Journal, De Gruyter, vol. 2(3), pages 1-27, July.
    14. Pollack, Jeffrey M. & Bosse, Douglas A., 2014. "When do investors forgive entrepreneurs for lying?," Journal of Business Venturing, Elsevier, vol. 29(6), pages 741-754.
    15. repec:spr:intemj:v:13:y:2017:i:3:d:10.1007_s11365-016-0424-5 is not listed on IDEAS
    16. repec:eur:ejmsjr:187 is not listed on IDEAS
    17. Brian L. Connelly & Robert E. Hoskisson & Laszlo Tihanyi & S. Trevis Certo, 2010. "Ownership as a Form of Corporate Governance," Journal of Management Studies, Wiley Blackwell, vol. 47(s2), pages 1561-1589, December.
    18. Schwienbacher, Armin, 2013. "The entrepreneur's investor choice: The impact on later-stage firm development," Journal of Business Venturing, Elsevier, vol. 28(4), pages 528-545.
    19. Dutta, Supradeep & Folta, Timothy B., 2016. "A comparison of the effect of angels and venture capitalists on innovation and value creation," Journal of Business Venturing, Elsevier, vol. 31(1), pages 39-54.
    20. Fairchild, Richard, 2011. "An entrepreneur's choice of venture capitalist or angel-financing: A behavioral game-theoretic approach," Journal of Business Venturing, Elsevier, vol. 26(3), pages 359-374, May.
    21. de Bettignies, Jean-Etienne & Brander, James A., 2007. "Financing entrepreneurship: Bank finance versus venture capital," Journal of Business Venturing, Elsevier, vol. 22(6), pages 808-832, November.

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