Economics at your fingertips  

Entrepreneurial manipulation with staged financing

Chris Yung

Journal of Banking & Finance, 2019, vol. 100, issue C, 273-282

Abstract: Finance is staged in entrepreneurial settings. It has been argued that staging has a drawback: entrepreneurs manipulate short-term appearances to keep funds flowing. In contrast, this paper finds that staging can lead to either more or less manipulation than non-staged finance. Finally, behavior in early rounds induces a kind of “manipulation persistence” so that total manipulation is path-dependent. The model makes predictions regarding crowdsourced finance, switching of VCs, and lifecycle issues in entrepreneurial finance.

Keywords: Venture capital; Staging; Fraud; Manipulation; Entrepreneurial finance (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
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:

Access Statistics for this article

Journal of Banking & Finance is currently edited by Ike Mathur

More articles in Journal of Banking & Finance from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-05-11
Handle: RePEc:eee:jbfina:v:100:y:2019:i:c:p:273-282