Venture capitalist can guard against the morals hazard of entrepreneur through contract , which is optimal capital-structure contract in financing decision , is combining to equity fraction , stock design and staging finance , in order to make enterprise financing cost minimum , profit maximum, it is minimum that informational asymmetries' level fall to.
By analyzing the relation between risk investor and entrepreneur in a model at four stages, it is concluded that traditional bond contracts and share contracts are optimum contracts.
The study proves that government subsidies increase entrepreneur's expected pay-offs while increasing venture capitalist's expected pay-offs and more start-up enterprises are worth investing under subsidies.
by using the theory of the principal-agent, discuss how the venture capitalist and the entrepreneur utilize the rational contract and participate effectively in management to attain their mutual mobilization;
At investment Stage of venture capital, through analysing the arrangement such as the choice of investment tool, staging of investment and estimating Enterprises' value again based on Enterprise's achievement, control distribution etc. First, choice of investment tool is the core of agreement, and determines the principal-agent relationship between venture capitalist and entrepreneur to a great extent.
The entrepreneur is compensated for a greater loss of control through better terms of financing, ability to extract higher rents from asymmetric information, and improved risk sharing.
Also namely, in the given opportunity cost of investment that venture capitalist use staging investment pattern under the condition of opportunity cost, share with entrepreneur, and select the form of debt or equity.
The study analyzes the determinants of the operation performance such as nonfarm operation, financial subsidy policies, share structure, entrepreneur motivation, capital operation and capital structure of the listed agricultural companies in the background of transitional economy.
What appears much more important, is a critique of the myths and ideologies surrounding knowledge and service work, which Vo? and Pongratz have described in their well known concept of the ?employee-entrepreneur".
The second part studies women's guides to success and sketches out, in which ways the female entrepreneur of her self differs from her male counterpart.
However, the average bamboo entrepreneur consumed an amount of their own farm produce worth MK 26 679 (US$ 247), which was about 1.5 times as much as average bamboo income of MK 18 417 (US$ 170).
My analysis shows that modern finance theory only offers useful insights in VC-entrepreneur collaboration when both support and interference are separately investigated.
This paper studies the decision mechanism of credit risk in the credit markets of the commercial banks with imperfect information. When an entrepreneur's initial wealth reaches the lowest limit but does not go beyond the highest limit as demanded by the bank, the design of rationing and non_rationing is given by the decision mechanism of credit risk. In the case of imperfect information, the credit risk decision model and the optimal conditions of the mechanism are both presented. The paper aims to sh...
Venture investment can gi ve bir th of high earning and high risk at the same time.The venture capitalists always hope to get the maximized earning in t h e condition of minimized risk.However,th e information between the venture capital ist and entrepreneur is asymmetric,which determines it is very important how to establish the allocation of the burden o f risk and earning between them.This the sis analyses the importance of a rational design ...
Coordination between the entrepreneur and the venture investor is unquestionably of crucial importance to pioneering business. However,the conclusion drawn from the hypothesis of economic agents suggests that both sides tend to adopt a negative attitude towards this affair,which is obviously not the case in reality.This article attempts to deploy a framework of cornered situation to explore the coordinating mechanism between the entrepreneur and the venture investor.