Endogenous networks in investment syndication |
| |
| Authors: | Lanfang Wang Susheng Wang |
| |
| Institution: | 1. Hohenheim University, Chair of Corporate Finance, Wollgrasweg 49, 70599 Stuttgart, Germany;2. ZEW Mannheim, Department of International Finance and Financial Management, Germany;3. Leuphana University, Nord/LB Chair of Integrated Financial Risk Management, Scharnhorststr. 1, 21335 Lüneburg, Germany;4. University of Groningen, Faculty of Economics and Business, The Netherlands;1. Vlerick Business School, Reep 1, BE-9000 Gent, Belgium;2. Imperial College Business School, United Kingdom;3. Aalto University, Department of Industrial Engineering and Management, PO Box 15500, FI 0076 Aalto, Finland;4. Center for Management Buy-out Research, Imperial College Business School, 46 Exhibition Road, London SW7 2AZ, United Kingdom;5. ETH Zurich, Switzerland;1. Trier University, Faculty of Management, Trier 54286, Germany;2. Erasmus School of Economics and Erasmus Institute of Management (ERIM), Erasmus University Rotterdam, P.O. Box 1738, Rotterdam 3000 DR, The Netherlands;3. Australian Centre for Entrepreneurship Research, QUT Business School, Queensland University of Technology, 2 George St, Brisbane, QLD 4000, Australia;4. Frankfurt School of Finance and Management, Sonnemannstraße 9-11, Frankfurt am Main 60314, Germany |
| |
| Abstract: | As an effective investment strategy, investors often invest jointly in a company by forming a syndicate. The unique feature of this paper is that it endogenizes the formation of an investment syndicate. We provide a theory on the endogenous formation of networks in investment syndication and analyze how several key factors such as risk aversion, productivity, risk and cost affect incentive and syndicated investment. We also apply the theory to venture capital investment and identify empirical evidence in support of it. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
