Building an Analytical Framework
On the basis of the literature and advancements of theoretical models, this chapter develops the research model that underlies the empirical analysis. The research model relates information asymmetries between inside and prospective outside investors about the business and eventual departures of entrepreneurial team members as well as VCFs’ abilities to resolve uncertainties of prospective investors to the VCF’s exit strategy. Initially, this chapter sets out the relevant literature and the theoretical constructs underlying the research model. Then, this chapter derives 20 hypotheses on how VCFs react to information inefficiency at exit. This chapter concludes with adjusting the hypotheses to the findings from four qualitative pilot-studies in which the research model is pre-tested.
KeywordsInformation Asymmetry Private Investor Public Investor Investment Bank Public Market
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