Product Market Competition, Venture Capital, and the Success of Entrepreneurial Firms

Douglas J. Cumming, Giang Nguyen and My Nguyen
Additional contact information
Douglas J. Cumming: Aston University [Birmingham]
Giang Nguyen: Waseda University (Japan, Tokyo)

Post-Print from HAL

Abstract: "We document a positive effect of product market competition (PMC) on venture capital (VC) staging. Employing large tariff rate reductions as an exogenous shock to PMC, we find that large tariff reductions lead to a greater likelihood of staged financing and a larger number of financing rounds. Cross-sectional analyses reveal that the effect is stronger for entrepreneurial firms that are younger, operate in high-tech and manufacturing industries, or receive investments from less reputable and inexperienced VCs. Our findings are consistent with the notion that by mitigating business uncertainty and survival risk, VC staging acts as a complement to PMC for enhancing entrepreneurial firms' success."

Keywords: Product market competition; Monitoring; Venture capital staging; Success (search for similar items in EconPapers)
Date: 2022-11-01
References: Add references at CitEc
Citations:

Published in Journal of banking & finance = Journal of banking and finance, 2022, 16 p. ⟨10.1016/j.jbankfin.2022.106561⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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: https://EconPapers.repec.org/RePEc:hal:journl:hal-05644511

DOI: 10.1016/j.jbankfin.2022.106561

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().