Attracting Early-Stage Investors: Evidence from a Randomized Field Experiment

Journal of Finance

Volumn 72, Issue 2, 2017, Pages 509-538

  Bernstein, Shai ^a   Korteweg, Arthur ^a   Laws, Kevin ^a  

^a NONE

Author keywords

[No Author keywords available]

Indexed keywords

EID: 85015974896     PISSN: 00221082     EISSN: 15406261     Source Type: Journal    
DOI: 10.1111/jofi.12470     Document Type: Article

References (49)

1. Barber, Brad M., and Terrance Odean, 2000, Trading is hazardous to your wealth: The common stock investment performance of individual investors, Journal of Finance 55, 773–806.doi/10.1111/0022-1082.00226
2. Bernstein, Shai, Xavier Giroud, and Richard Townsend, 2014, The impact of venture capital monitoring, Journal of Finance 71, 1591–1622.doi/10.1111/jofi.12370
3. Bertrand, Marianne, and Sendhil Mullainathan, 2004, Are Emily and Greg more employable than Lakisha and Jamal? A field experiment on labor market discrimination, American Economic Review 94, 991–1013.doi/10.1257/0002828042002561
4. Bikhchandani, Sushil, David Hirshleifer, and Ivo Welch, 1992, A theory of fads, fashion, custom, and cultural change as informational cascades, Journal of Political Economy 100, 992–1026.doi/10.1086/261849
5. Cameron, A. Colin, Jonah B. Gelbach, and Douglas L. Miller, 2008, Bootstrap-based improvements for inference with clustered errors, Review of Economics and Statistics 90, 414–427.doi/10.1162/rest.90.3.414
6. Falkenstein, Eric G., 1996, Preferences for stock characteristics as revealed by mutual fund portfolio holdings, Journal of Finance 51, 111–135.doi/10.1111/j.1540-6261.1996.tb05204.x
7. Fried, Vance H., and Robert D. Hisrich, 1994, Toward a model of venture capital investment decision making, Financial Management 23, 28–37.doi/10.2307/3665619
8. Goldfarb, Brent, Gerard Hoberg, David Kirsch, and Alexander Triantis, 2013, Are angels different? An analysis of early venture financing, Robert H. Smith School Research Paper No. RHS 06–072, University of Maryland.
9. Gompers, Paul, and Josh Lerner, 2001, The Money of Invention (Harvard Business School Press, Cambridge, MA).
10. Gompers, Paul, Josh Lerner, and David Scharfstein, 2005, Entrepreneurial spawning: Public corporations and the genesis of new ventures, 1986 to 1999, Journal of Finance 60, 577–614.doi/10.1111/j.1540-6261.2005.00740.x
11. Gompers, Paul A., and Andrew Metrick, 2001, Institutional investors and equity prices, Quarterly Journal of Economics 116, 229–259.doi/10.1162/003355301556392
12. Grossman, Sanford J., and Oliver D. Hart, 1986, The costs and benefits of ownership: A theory of vertical and lateral integration, Journal of Political Economy 94, 691–719.doi/10.1086/261404
13. Hall, Bronwyn H., and Josh Lerner, 2010, The financing of R&D and innovation, in Bronwyn H. Hall, and Nathan Rosenberg, eds.: Handbook of the Economics of Innovation, Vol. 1 (Elsevier, North Holland, Amsterdam).
14. Harris, Robert S., Tim Jenkinson, Steven N. Kaplan, and Rüdiger Stucke, 2014, Has persistence persisted in private equity? Evidence from buyout and venture capital funds, Darden Business School Working Paper No. 2304808, University of Virginia.
15. Hart, Oliver D., and John Moore, 1990, Property rights and the nature of the firm, Journal of Political Economy 98, 1119–1158.doi/10.1086/261729
16. Hochberg, Yael, Alexander Ljungqvist, and Annette Vissing-Jorgensen, 2014, Informational holdup and performance persistence in venture capital, Review of Financial Studies 27, 102–152.doi/10.1093/rfs/hht046
17. Hurst, Erik, and Annamaria Lusardi, 2004, Liquidity constraints, household wealth, and entrepreneurship, Journal of Political Economy 112, 319–347.doi/10.1086/381478
18. Ivković, Zoran, and Scott Weisbenner, 2005, Local does as local is: Information content of the geography of individual investors' common stock investments, Journal of Finance 60, 267–306.
19. Kaplan, Steven N., and Antoinette Schoar, 2005, Private equity performance: Returns, persistence, and capital flows, Journal of Finance 60, 1791–1823.doi/10.1111/j.1540-6261.2005.00780.x
20. Kaplan, Steven N., Berk A. Sensoy, and Per Stromberg, 2009, Should investors bet on the jockey or the horse? Evidence from the evolution of firms from early business plans to public companies, Journal of Finance 64, 75–115.doi/10.1111/j.1540-6261.2008.01429.x
21. Kauermann, Göran, and Raymond J. Carroll, 2001, A note on the efficiency of sandwich covariance matrix estimation, Journal of the American Statistical Association 96, 1387–1396.doi/10.1198/016214501753382309
22. Kerr, William R., Josh Lerner, and Antoinette Schoar, 2014, The consequences of entrepreneurial finance: Evidence from angel financings, Review of Financial Studies 27, 20–55.doi/10.1093/rfs/hhr098
23. Kerr, William R., Ramana Nanda, and Matthew Rhodes-Kropf, 2014, Entrepreneurship as experimentation, Journal of Economic Perspectives 28, 25–48.doi/10.1257/jep.28.3.25
24. Korteweg, Arthur G., and Morten Sorensen, 2017, Skill and luck in private equity performance, Journal of Financial Economics (forthcoming).
25. Kortum, Samuel, and Josh Lerner, 2000, Assessing the contribution of venture capital to innovation, RAND Journal of Economics 31, 674–692.doi/10.2307/2696354
26. Krosnick, Jon A., 1999, Survey research, Annual Review of Psychology 50, 537–567.doi/10.1146/annurev.psych.50.1.537
27. Macmillan, Ian C., Robin Siegel, and P.N. Subba Narasimha, 1986, Criteria used by venture capitalists to evaluate new venture proposals, Journal of Business Venturing 1, 119–128.doi/10.1016/0883-9026(85)90011-4
28. Macmillan, Ian C., Lauriann Zemann, and P.N. Subbanarasimha, 1987, Criteria distinguishing successful from unsuccessful ventures in the venture screening process, Journal of Business Venturing 2, 123–137.doi/10.1016/0883-9026(87)90003-6
29. Manso, Gustavo, 2015, Experimentation and the returns to entrepreneurship, Working paper, UC Berkeley.
30. Marom, Dan, and Orly Sade, 2014, Are the life and death of an early-stage venture indeed in the power of the tongue? Lessons from online crowdfunding pitches, Working paper, Hebrew University of Jerusalem.
31. Metrick, Andrew, and Ayako Yasuda, 2010, Venture Capital and the Finance of Innovation, 2nd edition (John Wiley & Sons, Hoboken, NJ).
32. Moskowitz, Tobias J., and Annette Vissing-Jorgensen, 2002, The returns to entrepreneurial investment: A private equity premium puzzle? American Economic Review 92, 745–778.doi/10.1257/00028280260344452
33. Ouimet, Paige, and Rebecca Zarutskie, 2013, Who works for startups? The relation between firm age, employee age, and growth, Journal of Financial Economics 112, 386–407.doi/10.1016/j.jfineco.2014.03.003
34. Pence, Christine Cope, 1982, How Venture Capitalists Make Investment Decisions (UMI Research Press, Ann Arbor, MI).
35. Petersen, Mitchell A., 2009, Estimating standard errors in finance panel data sets: Comparing approaches, Review of Financial Studies 22, 435–480.doi/10.1093/rfs/hhn053
36. Pukthuanthong, Kuntara, 2006, Underwriter learning about unfamiliar firms: Evidence from the history of biotech IPOs, Journal of Financial Markets 9, 366–407.doi/10.1016/j.finmar.2006.05.002
37. Puri, Manju, and David T. Robinson, 2013, The economic psychology of entrepreneurship and family business, Journal of Economics & Management Strategy 22, 423–444.doi/10.1111/jems.12013
38. Quindlen, Ruthann, 2000, Confessions of a Venture Capitalist (Warner Books, New York, NY).
39. Rajan, Raghuram G., 2012, Presidential address: The corporation in finance, Journal of Finance 57, 1173–1217.
40. Rajan, Raghuram G., and Luigi Zingales, 2001, The firm as a dedicated hierarchy: A theory of the origins and growth of firms, Quarterly Journal of Economics 116, 805–851.doi/10.1162/00335530152466241
41. Rothemberg, Thomas J., 1988, Approximate power functions for some robust tests of regression coefficients, Econometrica 56, 997–1019.doi/10.2307/1911356
42. Samila, Sampsa, and Olav Sorenson, 2010, Venture capital, entrepreneurship, and economic growth, Review of Economics and Statistics 93, 338–349.doi/10.1162/REST_a_00066
43. Schumpeter, Joseph, 1934, The Theory of Economic Development (Harvard University Press, Cambridge, MA).
44. Solow, Robert M., 1957, Technical change and the aggregate production function, Review of Economics and Statistics 39, 312–320.doi/10.2307/1926047
45. Sorensen, Morten, 2007, How smart is smart money? A two-sided matching model of venture capital, Journal of Finance 62, 2725–2762.doi/10.1111/j.1540-6261.2007.01291.x
46. Thompson, Samuel B., 2011, Simple formulas for standard errors that cluster by both firm and time, Journal of Financial Economics 99, 1–10.doi/10.1016/j.jfineco.2010.08.016
47. Welch, Ivo, 1992, Sequential sales, learning, and cascades, Journal of Finance 47, 695–732.doi/10.1111/j.1540-6261.1992.tb04406.x
48. Wermers, Russ, 2000, Mutual fund performance: An empirical decomposition into stock-picking talent, style, transactions costs, and expenses, Journal of Finance 55, 1655–1703.doi/10.1111/0022-1082.00263
49. Wernerfelt, Birger, 1984, A resource-based view of the firm, Strategic Management Journal 5, 171–180.doi/10.1002/smj.4250050207