Venture capital in bank - and market - based economies

Adeline Saillard () and Thomas Url ()
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Adeline Saillard: Centre d'Economie de la Sorbonne - Paris School of Economics, https://centredeconomiesorbonne.cnrs.fr
Thomas Url: WIFO - Austrian Institute of Economic Research, https://thomas.url.wifo.ac.at/

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: The determinants of venture capital investment have attracted a significant amount of attention from both academics and policymakers. We use a version of the Keuschnigg-Nielsen model for venture-capital-financed projects to condition our analysis on a reasonable set of exogenous variables but we focus on one determinant: financial market structure. The type of financial market structure (bank -or market-based) contributes substantially to explaining differences among countries with respect to the extent of venture capital investments in the initial business stages. We will use the cross country and time series variation from a panel of 19 industrial countries to support the hypothesis that venture capital thrives within market-based financial systems and is confined to an ancillary role in bank-based systems

Keywords: Venture capital; financial market structure; local stock markets; panel data (search for similar items in EconPapers)
JEL-codes: G24 O16 O50 (search for similar items in EconPapers)
Pages: 55 pages
Date: 2011-04
New Economics Papers: this item is included in nep-ent
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:11025

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