Different theories explain the relation between venture capital and corporate governance from different perspectives. In order to ensure a comprehensive understanding of the relationship, this work combines two disciplines related to the different functions of corporate governance: agency theory as an economic perspective and the dynamic resource-based view as a managerial theory. Whereas agency theory focuses on the control functions of monitoring and bonding, which restrain the managers, the dynamic resource-based view165 centres on the advice function of corporate governance.166 Consequently, the importance of corporate governance for the success of venture capitalists is judged differently by the two theories. Nonetheless, as the following introduction of the theoretical foundations shows, both theories consider corporate governance as a key factor for the success of growth companies and thereby for venture capitalists.
KeywordsCorporate Governance Competitive Advantage Venture Capitalist Family Firm Agency Theory
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