When are venture capital projects initiated?
Yong Li and
Joseph T. Mahoney
Journal of Business Venturing, 2011, vol. 26, issue 2, pages 239-254
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)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (4) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
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 currently edited by S. Venkataraman
More articles in Journal of Business Venturing from Elsevier
Series data maintained by Dana Niculescu ().