EconPapers    
Economics at your fingertips  
 

When are venture capital projects initiated?

Yong Li and Joseph T. Mahoney

Journal of Business Venturing, 2011, vol. 26, issue 2, pages 239-254

Abstract: This paper examines how public market information relates to the initiation of venture capital projects. Analysis of venture capital investments in the U.S. between 1980 and 2007 indicates that venture capitalists tend to defer new investment projects in target industries with substantial market volatility. This delay effect of market volatility is reduced if the target industry experiences high sales growth or if competition among venture capitalists is intense in the target industry. The paper provides further evidence to corroborate the view that venture capitalists rationally respond to market shifts in their investment decisions.

Keywords: Venture; capital; Real; options; Investment; timing; Uncertainty; Growth; Competition (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/B6VDH ... 791647c64ff5889fd58a
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:eee:jbvent:v:26:y:2011:i:2:p:239-254

Access Statistics for this article

Journal of Business Venturing is edited by S. Venkataraman

More articles in Journal of Business Venturing from Elsevier
Series data maintained by Zhang, Lei ().

 
Page updated 2013-12-22
Handle: RePEc:eee:jbvent:v:26:y:2011:i:2:p:239-254