The Exit Decision in the European Venture Capital Market
Elisabete Gomes Santana Félix (efelix@uevora.pt) and
Cesaltina Pires
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Elisabete Gomes Santana Félix: Assistant Professor, University of Évora and CEFAGE-UÉ
Authors registered in the RePEc Author Service: Elisabete Gomes Santana Félix
CEFAGE-UE Working Papers from University of Evora, CEFAGE-UE (Portugal)
Abstract:
This article analyzes the exit decision in the European venture capital market, studying when to exit and how it interacts with the exit form. The paper emphasizes the impact of asymmetric information on the divestment decision. Our model considers the impact of haracteristics of the venture capital investor, characteristics of the investment and contracting variables on the exit decision. Our results show that venture capitalists associated with .nancial institutions have quicker exits, a result which is stronger for trade-sales exits. In addition, our results highlight the importance of the contracting variables on the exit decision. An unexpected but interesting result is that the presence in the board of directors leads to longer investment duration.
Keywords: Asymmetric information; venture capital; trade sales; IPO; write-offs; exit decision; competing risks model. (search for similar items in EconPapers)
JEL-codes: C24 G24 G32 G38 K22 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2008
New Economics Papers: this item is included in nep-cfn, nep-eec and nep-ent
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Related works:
Journal Article: The exit decision in the European venture capital market (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:cfe:wpcefa:2008_01
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