Financing Risk and Innovation

Published Online:https://doi.org/10.1287/mnsc.2015.2350

References

  • Acharya V, Gale D, Yorulmazer T (2011) Rollover risk and market freezes. J. Finance 66(4):1177–1209.CrossrefGoogle Scholar
  • Aghion P, Bolton P (1992) An incomplete contracts approach to financial contracting. Rev. Econom. Stud. 59(3):473–494.CrossrefGoogle Scholar
  • Aghion P, Howitt P (1992) A model of growth through creative destruction. Econometrica 60(2):323–351.CrossrefGoogle Scholar
  • Aumann RJ (1974) Subjectivity and correlation in randomized strategies. J. Math. Econom. 1:67–96.CrossrefGoogle Scholar
  • Banerjee A (1992) A simple model of herd behavior. Quart. J. Econom. 107(3):797–818.CrossrefGoogle Scholar
  • Bergemann D, Hege U (2005) The financing of innovation: Learning and stopping. RAND J. Econom. 36(4):719–752.Google Scholar
  • Bergemann D, Hege U, Peng L (2008) Venture capital and sequential investments. Working paper, Yale University, New Haven, CT.Google Scholar
  • Berk JB, Green RC, Naik V (2004) The valuation and return dynamics of new ventures. Rev. Financial Stud. 17(1):1–35.CrossrefGoogle Scholar
  • Bikhchandani S, Hirshleifer D, Welch I (1992) A theory of fads, fashion, custom, and cultural change as informational cascades. J. Political Econom. 100(5):992–1026.CrossrefGoogle Scholar
  • Black BS, Gilson RJ (1998) Venture capital and the structure of capital markets: Banks versus stock markets. J. Financial Econom. 47(3):243–277.CrossrefGoogle Scholar
  • Carlsson H, van Damme E (1993) Global games and equilibrium selection. Econometrica 61(5):989–1018.CrossrefGoogle Scholar
  • Cass D, Shell K (1983) Do sunspots matter? J. Political Econom. 91(2):193–227.CrossrefGoogle Scholar
  • Cornelli F, Yosha O (2003) Staged financing and the role of convertible debt. Rev. Econom. Stud. 70(1):1–32.CrossrefGoogle Scholar
  • Fagnan DE, Fernandez JM, Lo AW, Stein RM (2013) Can financial engineering cure cancer? Amer. Econom. Rev. Papers Proc. 103(3):406–411.CrossrefGoogle Scholar
  • Fernandez J-M, Stein RM, Lo AW (2012) Commercializing biomedical research through securitization techniques. Nature Biotech. 30(10):964–975.CrossrefGoogle Scholar
  • Fluck Z, Garrison K, Myers S (2007) Venture capital contracting: Staged financing and later-stage syndication of venture capital investments. Working paper, Michigan State University, East Lansing.Google Scholar
  • Foster L, Haltiwanger J, Syverson C (2008) Reallocation, firm turnover and efficiency: Selection on productivity or profitability. Amer. Econom. Rev. 98(1):394–425.CrossrefGoogle Scholar
  • Goldstein I, Pauzner A (2004) Contagion of self-fulfilling financial crises due to diversification of investment portfolios. J. Econom. Theory 119:151–183.CrossrefGoogle Scholar
  • Gompers P (1995) Optimal investment, monitoring, and the staging of venture capital. J. Finance 50(5):1461–1489.CrossrefGoogle Scholar
  • Gompers P, Lerner J (1998) Venture capital distributions: Short-run and long-run reactions. J. Finance 53(6):2161–2183.CrossrefGoogle Scholar
  • Gompers P, Lerner J (2000) Money chasing deals? The impact of fund inflows on private equity valuations. J. Financial Econom. 55(2):281–325.CrossrefGoogle Scholar
  • Gompers P, Lerner J (2004) The Venture Capital Cycle (MIT Press, Cambridge, MA).Google Scholar
  • Gompers P, Kovner A, Lerner J, Scharfstein D (2008) Venture capital investment cycles: The impact of public markets. J. Financial Econom. 87(1):1–23.CrossrefGoogle Scholar
  • Grossman SJ, Hart OD (1986) The costs and benefits of ownership: A theory of vertical and lateral integration. J. Political Econom. 94(4):691–719.CrossrefGoogle Scholar
  • Hart OD, Moore J (1990) Property rights and the nature of the firm. J. Political Econom. 98(6):1119–1158.CrossrefGoogle Scholar
  • He Z, Xiong W (2012a) Dynamic debt runs. Rev. Financial Stud. 25(6):1799–1843.CrossrefGoogle Scholar
  • He Z, Xiong W (2012b) Rollover risk and credit risk. J. Finance 67(2):391–429.CrossrefGoogle Scholar
  • Hellmann T (2002) A theory of strategic venture investing. J. Financial Econom. 64(2):285–314.CrossrefGoogle Scholar
  • Hellmann T, Puri M (2000) The interaction between product market and financing strategy: The role of venture capital. Rev. Financial Stud. 13(4):959–984.CrossrefGoogle Scholar
  • Hellmann T, Puri M (2002) Venture capital and the professionalization of start-up firms: Empirical evidence. J. Finance 57(1):169–197.CrossrefGoogle Scholar
  • Hobijn B, Jovanovic B (2001) The information-technology revolution and the stock market: Evidence. Amer. Econom. Rev. 91(5):1203–1220.CrossrefGoogle Scholar
  • Hsu D (2004) What do entrepreneurs pay for venture capital affiliation? J. Finance 59(4):1805–1844.CrossrefGoogle Scholar
  • Janeway WH (2012) Doing Capitalism in the Innovation Economy (Cambridge University Press, Cambridge, UK).CrossrefGoogle Scholar
  • Kaplan S, Schoar A (2005) Private equity performance: Returns, persistence and capital flows. J. Finance 60(4):1791–1823.CrossrefGoogle Scholar
  • Kaplan S, Stromberg P (2002) Financial contracting theory meets the real world: An empirical analysis of venture capital contracts. Rev. Econom. Stud. 70(2):281–315.CrossrefGoogle Scholar
  • Kaplan S, Sensoy B, Stromberg P (2009) Should investors bet on the jockey or the horse? Evidence from the evolution of firms from early business plans to public companies. J. Finance 64(1):75–115.CrossrefGoogle Scholar
  • Kerr WR, Nanda R (2009) Democratizing entry: Banking deregulations, financing constraints, and entrepreneurship. J. Financial Econom. 94(1):124–149.CrossrefGoogle Scholar
  • Kindleberger C (1996) Manias, Panics, and Crashes: A History of Financial Crises, 3rd ed. (John Wiley & Sons, Hoboken, NJ). [Orig. pub. 1978 (Basic Books, New York).]CrossrefGoogle Scholar
  • Klepper S, Graddy E (1990) The evolution of new industries and the determinants of market structure. RAND J. Econom. 21(1):27–44.CrossrefGoogle Scholar
  • Kortum S, Lerner J (2000) Assessing the impact of venture capital on innovation. RAND J. Econom. 31(4):674–692.CrossrefGoogle Scholar
  • Lamoreaux NR, Sokoloff KL (2007) Financing Invention in the United States, 1870 to the Present (MIT Press, Cambridge, MA).CrossrefGoogle Scholar
  • Lerner J, Sorensen M, Stromberg P (2011) Private equity and long-run investment: The case of innovation. J. Finance 66(2):445–477.CrossrefGoogle Scholar
  • Li D (2011) Financial constraints, R&D investment and stock returns. Rev. Financial Stud. 24(9):2974–3007.CrossrefGoogle Scholar
  • Manso G (2011) Motivating innovation. J. Finance 66(5):1823–1860.CrossrefGoogle Scholar
  • Mollica M, Zingales L (2007) The impact of venture capital on innovation and the creation of new businesses. Working paper, University of Chicago, Chicago.Google Scholar
  • Morris S, Shin HS (1998) Unique equilibrium in a model of self-fulfilling currency attacks. Amer. Econom. Rev. 88(3):587–597.Google Scholar
  • Myers SC, Majluf N (1984) Corporate financing and investment decisions when firms have information the investors do not have. J. Financial Econom. 13(2):187–221.CrossrefGoogle Scholar
  • Nanda R (2008) Entrepreneurship and the discipline of external finance. Working paper, Harvard University, Cambridge, MA.Google Scholar
  • Nanda R, Rhodes-Kropf M (2013) Investment cycles and startup innovation. J. Financial Econom. 110(2):403–418.CrossrefGoogle Scholar
  • Pastor L, Veronesi P (2009) Technological revolutions and stock prices. Amer. Econom. Rev. 99(4):1451–1483.CrossrefGoogle Scholar
  • Perez C (2002) Technological Revolutions and Financial Capital (Edward Elgar, Cheltenham, UK).CrossrefGoogle Scholar
  • Rob R (1991) Learning and capacity expansion under demand uncertainty. Rev. Econom. Stud. 58(4):655–675.CrossrefGoogle Scholar
  • Samila S, Sorenson O (2011) Venture capital, entrepreneurship and economic growth. Rev. Econom. Statist. 93(1):338–349.CrossrefGoogle Scholar
  • Scharfstein D, Stein J (1990) Herd behavior and investment. Amer. Econom. Rev. 80(3):465–479.Google Scholar
  • Schmookler J (1966) Invention and Economic Growth (Harvard University Press, Cambridge, MA).CrossrefGoogle Scholar
  • Schumpeter J (1942) Capitalism, Socialism and Democracy (Harper & Brothers, New York).Google Scholar
  • Sequoia Capital (2008) R.I.P. good times. Presentation, October 10, http://www.slideshare.net/eldon/sequoia-capital-on-startups-and-the-economic-downturn-presentation?type=powerpoint.Google Scholar
  • Sørensen M (2007) How smart is smart money? An empirical two-sided matching model of venture capital. J. Finance 62(6):2725–2762.CrossrefGoogle Scholar
  • Stiglitz JE, Weiss A (1981) Credit rationing in markets with imperfect information. Amer. Econom. Rev. 71(3):393–409.Google Scholar
  • Tian X, Wang TY (2014) Tolerance for failure and corporate innovation. Rev. Financial Stud. 27(8):2434–2473.CrossrefGoogle Scholar
  • Welch I (1992) Sequential sales, learning and cascades. J. Finance 47(2):695–732.CrossrefGoogle Scholar
  • Zeira J (1987) Investment as a process of search. J. Political Econom. 95(1):204–210.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.