Trust and controllability in venture capital fundraising

Journal of Business Research

Volumn 67, Issue 11, 2014, Pages 2411-2418

  Kollmann, Tobias ^a   Kuckertz, Andreas ^b   Middelberg, Nils ^c  

^a UNIVERSITY OF DUISBURG ESSEN   (Germany)

^b UNIVERSITY OF HOHENHEIM   (Germany)

^c UNIVERSITY OF HOHENHEIM   (Germany)

Author keywords

Controllability; Fundraising; Track record; Trust; Venture capital

Indexed keywords

EID: 84905568989     PISSN: 01482963     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jbusres.2014.02.008     Document Type: Article

References (64)

1. Amit R., Brander J., Zott C. Why do venture capital firms exist? Theory and Canadian evidence. Journal of Business Venturing 1998, 13:441-466.
2. Armstrong J.S., Overton T.S. Estimating nonresponse bias in mail surveys. Journal of Marketing Research 1977, 14:396-402.
3. Arrow K.J. Gifts and exchanges. Philosophy and Public Affairs 1972, 1:343-362.
4. Bagozzi R., Edwards J. A general approach for representing constructs in organizational research. Organizational Research Methods 1998, 1:45-87.
5. Bagozzi R.P., Heatherton T.F. A general approach to representing multifaceted personality constructs: Application to state self-esteem. Structural Equation Modeling 1994, 1:35-67.
6. Balboa M., Marti J. Factors that determine the reputation of private equity managers in developing markets. Journal of Business Venturing 2007, 22:453-480.
7. Barnes S., Menzies V. Investment into venture capital funds in Europe: An exploratory study. Venture Capital. An International Journal of Entrepreneurial Finance 2005, 7:209-226.
8. Bottazzi L., Da Rin M., Hellmann T.F. The importance of trust for investment: Evidence from venture capital 2010, Center for Economic Research, Tilburg.
9. Byrne D.E. The attraction paradigm 1971, Academic Press, New York, NY.
10. Connelly B.L., Certo S.T., Ireland R.D., Reutzel C.R. Signaling theory - A review and assessment. Journal of Management 2011, 37:39-68.
11. Cross R., Borgatti S.P., Parker A. Beyond answers: Dimensions of the advice network. Social Networks 2001, 23:215-235.
12. Cumming D.J. Government policy towards entrepreneurial finance: Innovation investment funds. Journal of Business Venturing 2007, 22:193-235.
13. Cumming D.J., MacIntosh J.G. Crowding out private equity: Canadian evidence. Journal of Business Venturing 2006, 21:569-609.
14. Das T.K., Teng B.-S. Between trust and control: Developing confidence in partner cooperation in alliances. Academy of Management Review 1998, 23:491-512.
15. Dibben M. Exploring interpersonal trust in the entrepreneurial venture 2000, Macmillan, Basingstoke.
16. Doney P., Cannon J.P. An examination of the nature of trust in buyer-seller relationships. Journal of Marketing 1997, 61:35-51.
17. Earle T.C., Cvetkovich G. Culture, cosmopolitanism, and risk management. Risk Analysis 1997, 17:55-65.
18. Eisenhardt K.M. Agency theory: An assessment and review. Academy of Management Review 1989, 14:57-74.
19. EVCA Guide on private equity and venture capital for entrepreneurs. VCA: Research and data 2011, (Retrieved November 19, 2013, from http://www.evca.eu/entrepreneur/default.aspx?id=3540).
20. Fan X., Thompson B., Wang L. Effects of sample size, estimation methods, and model specification on structural equation modeling fit indexes. Structural Equation Modeling 1999, 6:56-83.
21. Finney S.J., DiStefano C. Non-normal and categorical data in structural equation modeling. Structural equation modeling: A second course 2006, 269-314. Information Age Publishing, Greenwich, CT. G.R. Hancock, R.O. Mueller (Eds.).
22. Franke N., Gruber M., Harhoff D., Henkel J. What you are is what you like - Similarity biases in venture capitalists' evaluation of start-up teams. Journal of Business Venturing 2006, 21:802-826.
23. Freear J., Sohl J.E., Wetzel W.E. Angels and non-angels: Are there differences?. Journal of Business Venturing 1994, 9:109-123.
24. Ghoshal S., Moran P. Bad for practice - A critique of the transaction cost theory. Academy of Management Review 1996, 21:13-47.
25. Gompers P.A., Lerner J. The use of covenants: An empirical analysis of venture partnership agreements. Journal of Laws and Economics 1996, 39:463-498.
26. Gompers P.A., Lerner J. What drives venture capital fundraising?. Brookings papers on economic activity 1998, 149-204.
27. Groh A., Liechtenstein H., Canela M.A. Allocation determinants of institutional investments in venture capital and private equity limited partnerships in Central Eastern Europe 2007, IESE Business School, University of Navarra, Barcelona.
28. Guiso L., Sapienza P., Zingales L. Trusting the stock market. Journal of Finance 2008, 63:2557-2600.
29. Gulati R., Sytch M. Does familiarity breed trust? Revisiting the antecedents of trust. Managerial and Decision Economics 2008, 29:165-190.
30. Harman H.H. Modern factor analysis 1967, University of Chicago Press, Chicago, IL.
31. Harris L. A critical theory of private equity. Delaware Journal of Corporate Law 2010, 35:259-293.
32. Hart O. Corporate governance: Some theory and implications. Economic Journal 1995, 105:678-689.
33. Hu L., Bentler P.M. Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling 1999, 6:1-55.
34. Jensen M.C., Meckling W.H. Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics 1976, 3:306-360.
35. Kaplan S., Schoar A. Private equity performance: Returns, persistence and capital flows. Journal of Finance 2005, 60:1791-1823.
36. Kollmann T., Kuckertz A. Evaluation uncertainty of venture capitalists' investment criteria. Journal of Business Research 2010, 63:741-747.
37. Korobkin R.B. A positive theory of legal negotiation. The Georgetown Law Journal 2000, 88:1789-1832.
38. Korobkin R.B., Guthrie C. Heuristics and biases at the bargaining table. Marquette Law Review 2004, 87:795-808.
39. Lakonishok J., Shleifer A., Thaler R., Vishny R. Window dressing by pension fund managers. AEA papers and proceedings 1991, May, 227-231.
40. Lichtenthal J.D., Tellefsen T. Toward a theory of business buyer-seller similarity. Journal of Personal Selling and Sales Management 2001, 21:1-14.
41. Lutz E., Bender M., Achleitner A.-K., Kaserer C. Importance of spatial proximity between venture capital investors and investees in Germany. Journal of Business Research 2013, 66:2346-2354.
42. Mayer R.C., Davis J.H., Schoorman F.D. An integrative model of organizational trust. Academy of Management Review 1995, 20:709-734.
43. McPherson J.M., Smith-Lovin L. Homophily in voluntary organizations: Status distance and the composition of face-to-face groups. American Sociological Review 1987, 52:370-379.
44. Milliman R.E., Fugate D.L. Using trust-transference as a persuasion technique: An empirical field investigation. Journal of Personal Selling and Sales Management 1988, 8:1-7.
45. Moorman C., Zaltman G., Deshpande R. Relationships between providers and users of market research: The dynamics of\ trust within and between organizations. Journal of Marketing Research 1992, 29:314-328.
46. Muthén B.O. Goodness of fit with categorical and other non-normal variables. Testing structural equation models 1993, 205-243. Sage, Newbury Park, CA. K.A. Bollen, J.S. Long (Eds.).
47. Muthén L.K., Muthén B.O. Mplus user's guide 1998, Muthén & Muthén, Los Angeles, CA.
48. Netemeyer R.G., Johnston M.W., Burton S. An analysis of role conflict and role ambiguity in a structural equations framework. Journal of Applied Psychology 1990, 75:148-157.
49. Patel J., Zeckhauser R., Hendricks D. The rationality struggle: Illustrations from financial markets. AEA papers and proceedings 1991, May, 232-236.
50. Payne G.T., Davis J.L., Moore C.B., Bell R.G. The deal structuring stage of the venture capitalist decision-making process: Exploring confidence and control. Journal of Small Business Management 2009, 47:154-179.
51. Podsakoff P.M., MacKenzie S.B., Lee J.-Y., Podsakoff N.P. Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology 2003, 88:879-903.
52. Ring P.S., van de Ven A. Structuring cooperative relationships between organizations. Strategic Management Journal 1992, 13:483-498.
53. Sahlman W. The structure and governance of venture-capital organizations. Journal of Financial Economics 1990, 27:473-521.
54. Schoorman F.D., Mayer R.C., Davis J.H. An integrative model of organizational trust: Past, present, and future. Academy of Management Review 2007, 32:344-354.
55. Shapiro D., Sheppard B.H., Cheraskin L. Business on a handshake. Negotiation Journal 1992, 8:365-377.
56. Simpson I. Fund raising and investor relations 2000, European Private Equity & Venture Capital Association, Brussels.
57. Sirri E., Tufano P. Costly search and mutual fund flows. Journal of Finance 1998, 53:1589-1622.
58. Sullivan M. Segmenting the informal venture capital market: Economic, hedonistic, and altruistic investors. Journal of Business Research 1996, 36:25-35.
59. Tsai W., Ghoshal S. Social capital and value creation - The role of intrafirm networks. Academy of Management Journal 1998, 4:464-476.
60. Tyler T.R., Bies R.J. Beyond formal procedures: The interpersonal context of procedural justice. Applied social psychology and organizational settings 1990, 77-98. Erlbaum, Hillsdale, NJ. J.S. Carroll (Ed.).
61. Welpe I.M. Die Entstehung von Vertrauen im Kontext von Unsicherheit und Informationsasymmetrie. Zeitschrift für Betriebswirtschaft 2008, 78:1251-1284.
62. Yu C.-Y., Muthén B.O. Evaluation of model fit indices for latent variable models with categorical and continuous outcomes. Paper presented at the annual conference of the American Educational Research Association, New Orleans, LA 2002, April 4.
63. Zacharakis A., Shepherd D. The nature of information and overconfidence on venture capitalists' decision making. Journal of Business Venturing 2001, 16:311-332.
64. Zaheer A., McEvily B., Perrone V. Does trust matter? Exploring the effects of interorganizational and interpersonal trust on performance. Organization Science 1998, 9:141-159.