Entrepreneurial manipulation with staged financing

B-Tier
Journal: Journal of Banking & Finance
Year: 2019
Volume: 100
Issue: C
Pages: 273-282

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:eee:jbfina:v:100:y:2019:i:c:p:273-282
Journal Field
Finance
Author Count
1
Added to Database
2026-01-29