IS STAGED FINANCING DESIGNED FOR ALLEVIATING RISKS OR AGENCY PROBLEMS?

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	IS STAGED FINANCING DESIGNED FOR ALLEVIATING RISKS OR AGENCY PROBLEMS?
	Wang, Lanfang 1; Wang, Susheng 2
刊名	HANDBOOK OF BUSINESS AND FINANCE: MULTINATIONAL COMPANIES, VENTURE CAPITAL AND NON-PROFIT ORGANIZATIONS
	2010
页码	191-215
关键词	Staged financing Venture Capital Incentives Risks
英文摘要	Staged financing is very popular in reality, especially in venture capital financing. Over 90% of venture capital is invested through staged financing. Why is staged financing so popular? There are many theoretical studies that focus on two major issues of venture capital: risks and agency problems. These studies find that staged financing is capable of controlling both risks and agency problems. In other words, staged financing can potentially be used as an effective mechanism in dealing with both risks and agency problems. In fact, the emphasis in the literature has been on the resolution of agency problems. What happens in reality? Is staged financing in reality mainly a device for alleviating risks, for coping with agency problems or both? This is an important empirical question. Surprisingly, no one has ever conducted such an investigation. This paper reports on an empirical study of the issue. To our surprise, we find that staged financing is almost exclusively a device in alleviating risks in venture capital financing. More specifically, we find a lot of evidence supporting staged financing as a mechanism in alleviating risks but not in coping with agency problems.
WOS研究方向	Business & Economics
语种	英语
出版者	NOVA SCIENCE PUBLISHERS, INC
WOS记录号	WOS:000278870500008
内容类型	期刊论文
源URL	[http://10.2.47.112/handle/2XS4QKH4/2422]
专题	上海财经大学
通讯作者	Wang, Lanfang
作者单位	1.Shanghai Univ Finance & Econ, Sch Accounting, Shanghai, Peoples R China; 2.Hong Kong Univ Sci & Technol, Dept Econ, Hong Kong, Hong Kong, Peoples R China
推荐引用方式 GB/T 7714	Wang, Lanfang,Wang, Susheng. IS STAGED FINANCING DESIGNED FOR ALLEVIATING RISKS OR AGENCY PROBLEMS?[J]. HANDBOOK OF BUSINESS AND FINANCE: MULTINATIONAL COMPANIES, VENTURE CAPITAL AND NON-PROFIT ORGANIZATIONS,2010:191-215.
APA	Wang, Lanfang,&Wang, Susheng.(2010).IS STAGED FINANCING DESIGNED FOR ALLEVIATING RISKS OR AGENCY PROBLEMS?.HANDBOOK OF BUSINESS AND FINANCE: MULTINATIONAL COMPANIES, VENTURE CAPITAL AND NON-PROFIT ORGANIZATIONS,191-215.
MLA	Wang, Lanfang,et al."IS STAGED FINANCING DESIGNED FOR ALLEVIATING RISKS OR AGENCY PROBLEMS?".HANDBOOK OF BUSINESS AND FINANCE: MULTINATIONAL COMPANIES, VENTURE CAPITAL AND NON-PROFIT ORGANIZATIONS (2010):191-215.