Entrepreneurial Litigation and Venture Capital Finance

B-Tier
Journal: Journal of Financial and Quantitative Analysis
Year: 2017
Volume: 52
Issue: 5
Pages: 2217-2250

Authors (3)

Cumming, Douglas (not in RePEc) Haslem, Bruce (not in RePEc) Knill, April (University of South Carolina)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

This article empirically examines the interaction between entrepreneurial plaintiff firm litigation and venture capital (VC). The data indicate that, relative to nonplaintiffs, firms that litigate prior to (after) obtaining VC i) receive financing from less (more) reputable venture capitalists (VCs), ii) are subject to greater (similar) oversight by VCs, iii) receive less (more) VC funding, iv) are more likely to exit through an initial public offering than through an acquisition, and v) are less likely to be liquidated when litigation occurs after VC financing. The results are robust to different specifications, methodologies, and endogeneity checks.

Technical Details

RePEc Handle
repec:cup:jfinqa:v:52:y:2017:i:05:p:2217-2250_00
Journal Field
Finance
Author Count
3
Added to Database
2026-01-25