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Venture capital as human resource management

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  • de Carvalho, Antonio Gledson
  • Calomiris, Charles W.
  • de Matos, João Amaro

Abstract

Venture capitalists actively participate in attracting, identifying, and suggesting managers for their portfolio companies through internal and external human resource networks. We collect and analyze survey data on the operation of this network. Theoretical and empirical analyses show that cross-sectional differences among portfolio companies should be, and are, associated with differences in the intensity with which venture capitalists network. Relevant factors include (1) the value of the information transmitted, (2) the riskiness of the activities of the portfolio companies, (3) the size of the venture capital fund, (4) the degree of difficulty in attracting executives, and (5) the reputation of the venture capitalist for successfully recycling managers.

Suggested Citation

  • de Carvalho, Antonio Gledson & Calomiris, Charles W. & de Matos, João Amaro, 2008. "Venture capital as human resource management," Journal of Economics and Business, Elsevier, vol. 60(3), pages 223-255.
  • Handle: RePEc:eee:jebusi:v:60:y:2008:i:3:p:223-255
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    References listed on IDEAS

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    Cited by:

    1. Bertoni, Fabio & Tykvová, Tereza, 2013. "Which form of venture capital is most supportive of innovation? Evidence from European biotechnology companies," FZID Discussion Papers 69-2013, University of Hohenheim, Center for Research on Innovation and Services (FZID).
    2. Bertoni, Fabio & Tykvová, Tereza, 2015. "Does governmental venture capital spur invention and innovation? Evidence from young European biotech companies," Research Policy, Elsevier, pages 925-935.
    3. SAU, Lino, 2007. "New Pecking Order Financing for Innovative Firms: an Overview," MPRA Paper 3659, University Library of Munich, Germany.
    4. Anne Stévenot & Loris Guéry, 2010. "Le rôle «d’entrepreneur institutionnel» des capitalinvestisseurs auprès des entreprises:des influences coercitives et cognitives liées à l’importance relative des ressources," Revue Finance Contrôle Stratégie, revues.org, vol. 13(2), pages 107-144., June.

    More about this item

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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