Venture Capital Supply and Accounting Information System Development
This 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.
|Date of creation:||Oct 1996|
|Date of revision:|
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