Theoretical foundations and related literature
In this chapter, the decision to invest at a distance is examined from two opposite perspectives. First, the potential rationales behind a VC firm’s decision to invest in international ventures are discussed based on managerial finance and internationalization literature. Second, the costs associated with investing at a distance are analyzed using agency theory. The third subsection concludes and highlights the identified research gaps and contribution of the thesis.
KeywordsForeign Direct Investment Venture Capital Moral Hazard Adverse Selection Agency Theory
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