Risk Management in European Private Equity Funds

Kut, Can; Pramborg, Bengt; Smolarski, Jan

doi:10.3905/jpe.2006.635428

Cited by 6 publications

(3 citation statements)

References 31 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…On the basis of the multiple linear regression reached results, the variable "Capital_Size" turns out to have a negative effect on the venture capital companies' acceptance rate to finance the company (with a respective negative coefficient (-0.291). It seems that, in regard of our study sample, the firm's capital size relevant criterion proves to have a negative effect the acceptance rate to finance the subject company, a finding which appears to contradict the results achieved by Kut et al (2005) and Leleux and Surlemont (2003). Consequently, the hypothesis H4 remains no-validated.…”

Section: The Firm's Capital Sizecontrasting

confidence: 68%

Corporate Finance Strategy Via Tunisian Venture Capital Organisms

Dziri

Jarboui

2018

5004

View full text Add to dashboard Cite

The present research work is designed to examine the Tunisian corporate case financing strategy as undertaken by the venture capital institutions, on the basis of some criteria applied during the selection process. After discussing the theoretical relationship between the venture capitalist and the entrepreneur, we are advancing an empirical model testing the influence of the venture capitalist’ selection criteria on the acceptance to finance the enterprise. Overall, the study’s reached finding, as conducted on a sample of 41 venture capital companies operating up until the end of the year 2016. In fact, the study have revealed well the significantly impact of certain adopted criteria in relation to the other criteria and it maintains that the venture capitalist’ attitude towards the investment risk.

show abstract

Section: The Firm's Capital Sizecontrasting

confidence: 68%

Corporate Finance Strategy Via Tunisian Venture Capital Organisms

Dziri

Jarboui

2018

5004

View full text Add to dashboard Cite

show abstract

“…Risk management in various forms is fundamental to the success of most venture capital and buyout investors (Kut et al, 2005). Therefore, it is not surprising that prior literature has identified a great variety of risk reduction strategies.…”

Section: Risk In the Venture Capital Contextmentioning

confidence: 99%

“…In the preinvestment stage, investors spend a significant amount of time and effort in evaluating and screening investment opportunities (Fiet, 1995a, b;Kaplan and Stro¨mberg, 2003). Portfolio diversification across investment stages and industries is a wellknown means of controlling risk by reducing unsystematic, firm-specific risk (Gupta and Sapienza, 1992;Norton and Tenenbaum, 1993;Kut et al, 2005). When structuring the deal, venture capitalists make use of convertible securities, syndication and staged financing to protect themselves from market and agency risks (Gompers, 1995).…”

Section: Risk In the Venture Capital Contextmentioning

confidence: 99%

How experience and perceptions shape risky behaviour: Evidence from the venture capital industry

Parhankangas¹,

Hellström

2007

Venture Capital

View full text Add to dashboard Cite

This study addresses a hitherto underexplored, but potentially very central issue in venture capital research by investigating whether differences in risk perceptions and professional experience of venture capitalists prompt differing investment and risk reduction strategies. The study is based on a survey sent to 142 Swedish and Finnish venture capitalists, with a response rate of 63% (90 responses). Our results show that experience drives the perception of risk and the riskiness of the preferred investment portfolio. To be more specific, we find that in the presence of more pronounced perceptions of market and agency risk, partly stemming from their experience, investors seem to be willing to take more risks. This result may be attributed to overconfidence, illusion of control, or the speculative dimension of risk present in entrepreneurial settings. The portfolio risk is dynamically attenuated by the execution of various risk reduction strategies, such as syndication, information seeking, monitoring and the use of preferred stock. These findings lead us to believe not only that venture capitalists are proactive and responsible risk takers, who shield themselves from potential losses through a careful application of risk reduction strategies, but also that their responses to risk may resemble more the behaviour of typical entrepreneurs than that of typical managers.

show abstract

A Study on Project Information Search Channels in the Process of Private Equity Investment

Chen

Yin

2009

2009 International Conference on Management and Service Science

View full text Add to dashboard Cite

There are serious asymmetric information problems in the process of private equity investment, accordingly bringing out information search activities. This paper analyses six available channels of project information search in private equity investment, and analyses the condition of realizing the optimal search scale. Through analyzing the questionnaire, this paper finds that the current private equity investment funds search information mainly from the way of their social network which has some disadvantages. Based on Zhejiang Silicon Paradise Investment & Innovation Service Center Co., Ltd., this paper concludes that it is one of inevitable choices to build information intermediaries supported by government to solve project information search problems at the initial development stage of private equity investment in emerging economies.

show abstract

Risk Management in European Private Equity Funds

Cited by 6 publications

References 31 publications

Corporate Finance Strategy Via Tunisian Venture Capital Organisms

Corporate Finance Strategy Via Tunisian Venture Capital Organisms

How experience and perceptions shape risky behaviour: Evidence from the venture capital industry

A Study on Project Information Search Channels in the Process of Private Equity Investment

Contact Info

Product

Resources

About