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Relationship between Venture Capital, Corporate Governance and Firm Value

Abstract

This chapter builds a theoretical framework for the relationship between venture capital, corporate governance and firm value on the basis of the two perspectives introduced in chapter three. The four aspects that are expected to have the greatest importance in this relationship, based on the literature review, are analysed. First, the reasons for the venture capitalists’ influence on the corporate governance of portfolio companies are explained. Thereafter, the expected effects of the influence on corporate governance quality are described. This is followed by a description of the abilities that should determine the venture capitalists’ impact. In the end, the effects of good corporate governance on growth companies′ firm value are determined.291 The specific hypotheses are derived in the following.292

Keywords

Corporate Governance Venture Capitalist Board Member Agency Theory Initial Public Offering 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Deutscher Universitäts-Verlag | GWV Fachverlage GmbH, Wiesbaden 2007

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