Investor competition and project risk in Venture Capital investments

C-Tier
Journal: Economics Letters
Year: 2016
Volume: 141
Issue: C
Pages: 67-69

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

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

Abstract

In a double-sided moral hazard framework we model the effect of competition between Venture Capitalists on the risk profile of the investees. We show that as competition increases, investors are willing to finance risky projects that would otherwise be infeasible.

Technical Details

RePEc Handle
repec:eee:ecolet:v:141:y:2016:i:c:p:67-69
Journal Field
General
Author Count
2
Added to Database
2026-01-25