Post Investment Demand for Accounting Information by Venture Capitalists
The key conecpts of principal-agent analysis are utilised to investigate influences on venture capitalists' accounting information requirements as used in their dealings with investees. The findings are based on structured interviews held with twenty leading venture capitalists, managing funds which together comprise over three quarters of all UK venure capital funds. The results confirm that a number of the key concepts of principal-agent analysis are mirrored in the financial communication process between venture capital investors and their investees. They reveal the venture capitalists' appreciation of the dangers of moral hazard and information asymmetry. It is shown that, as a consequence, their information demands are designed to provide safeguards through bonding arrangements. These establish and define an information flow which can be utilised as the basis for frequent and regular monitoring of the investee.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||Oct 1994|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 01334 462420
Fax: 01334 462438
Web page: http://crieff.wordpress.com/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:san:crieff:9424. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bram Boskamp)
If references are entirely missing, you can add them using this form.