capital

The authors examine the neglected area of internationalisation by VCs. Using a representative sample of 195 VCs, they show that the decision of a European VC firm to invest internationally is driven by its human resources.

The paper provides an overview of previous research on the barriers to capital faced by African-American entrepreneurs, and presents data that suggests African-American-owned businesses are less likely to have loans approved and are more likely to not apply for loans because of fear of denial.

The authors use a panel of manufacturing firms to analyze the adjustment process in capital blue collar and white collar employment in Uruguay during a period of trade liberalization. They suggest that trade protection may in fact destroy rather than create jobs within industries, as firms in highly protected sectors are more reluctant to hire and more ready to fire than firms in sectors with low protection.

The authors inspect foreign direct investments and if foreign take-overs affect growth and welfare. They find that foreign take-over of firms is neutral with respect to labor productivity, and hence the issue of welfare gain and welfare drain is turned into a non-issue.

This paper evaluates the ability of U.S. investors to allocate their foreign equity portfolios across 44 countries over a 25-year period. The authors find that U.S. portfolios achieved a significantly higher Sharpe ratio than foreign benchmarks, especially since 1990. They test whether this strong performance owed to trading expertise or longer-term allocation expertise. The evidence is overwhelmingly against trading expertise.

This paper investigates the growth effects of public capital and public investment in Europe using VAR and panel methods. All methods conclude to a significant role for public investment or public capital, except with some VARs trying to replicate production.

Using the World Bank survey of 1500 firms in five Chinese cities, this paper studies whether the presence of foreign firms produces technology spillovers on domestic firms operating in the same city and industry. The paper finds positive spillovers for more technologically advanced firms and no or negative spillovers for more backward firms. The authors analyze the channels of such spillovers and find that the transfer of technology occurs through movement of high-skilled workers from FDI firms to domestic firms as well as through network externalities among high-skilled workers.

This study focuses on the non-financial value-added of venture capital investors (VCs) as perceived by the CEOs of Finnish biotechnology companies. It pays attention to differences in the value-added between informal venture capitalists, private sector venture capitalists and public sector venture capital organizations. In addition, this study pays attention to value-adding mechanisms which venture capitalists use in developing their portfolio companies and factors which influence the perceived value-added.

The aim of the article is to describe how Estonian venture capitalists make financing and investment decisions, and compare these results with theoretical recommendations found in corporate finance and venture capital literature. The focus is on the methodological procedures in venture capital investment and financing. A case study approach is used to collect information about the current practice of venture capital investments and financing in Estonia.

The paper summarizes the findings obtained during the first year of the Venture Fun project, carried out in an EU Network of Excellence PRIME and funded from the Sixth Framework Programme. The paper defines the central concepts of the project, identifies questions for further elaboration and study, and finally provides a rough idea of the different profiles that the studied countries (Finland, Israel, France, Italy, and the UK) evidence in the organization of their VC industries.