The political and legal determinants of venture capital investments around the world

Bonini, Stefano; Alkan, Senem

doi:10.1007/s11187-011-9323-x

Cited by 61 publications

(49 citation statements)

References 40 publications

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“…He finds that stock market capitalization has a significant positive impact on early-stage VC investments. Similar results are obtained by most of the studies, even if also, in this case, there are some exceptions (see Bonini and Alkan, 2012;Félix et al, 2013, which seem nevertheless to be contingent on the specific variables used to proxy stock market capitalization).…”

Section: Financial Market-related Conditionssupporting

confidence: 87%

“…The authors test the significance of the relation between IPOs and capital contribution to VC funds over time in the USA and find evidence that IPOs trigger fundraising in the succeeding year. In a likewise manner, Bonini and Alkan (2012) highlight the positive role of the number of IPOs on VC early-stage investments. Apart from a few exceptions (e.g.…”

Section: Financial Market-related Conditionsmentioning

confidence: 87%

“…In like manner, several works have appeared in recent years documenting the role of the corporate income tax. Bonini and Alkan (2012), as well as Romain and van Pottelsberghe (2004), find that high corporate income taxes negatively influence the development of VC. Similarly, Schröder (2011) finds coherent results using VC data from 15 European countries in the 1995-2005 period.…”

Section: Fiscal Policymentioning

confidence: 89%

“…For example, the governmental direct intervention through ad hoc programs designed to stimulate the emergence and development of VC has been proven to be ineffective by three out of five studies (see Table 2, row 13). Then, Bonini and Alkan (2012) investigate the roles of political stability and control of corruption but they do not find them to be significant for the presence of VC activity. Guler and Guillén (2010) analyse political stability and find its positive impact on VC activity; Groh and Wallmeroth (2016) report a negative impact of a bribery and corruption index on VC activity.…”

Section: Quality Of the Governmental Institutionsmentioning

confidence: 98%

“…French tradition is considered the weakest in this respect, while the English law tradition provides the best ground for legal protections. Among seven studies that considered this determinant, an emblematic work is represented by the analysis of Bonini and Alkan (2012). 7 The authors utilize a panel dataset for 16 worldwide countries during the time period 1995-2002 and control for the impact of the legal system prevailing in every Nation.…”

Section: Other Regulatory Aspectsmentioning

confidence: 99%

See 4 more Smart Citations

Institutional Determinants of Venture Capital Activity: An Empirically Driven Literature Review and a Research Agenda

Grilli

Latifi

Mrkajic

2019

Journal of Economic Surveys

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Venture Capital (VC) was born and has flourished in the United States, yet it has only modestly developed in other geographical areas. A vast body of research has been carried out to investigate the factors which are conducive to VC activity, and that may better explain the differences in the degree of development and performance of VC industry across different geographical contexts. However, there has only been a limited effort in the literature to systematize what we know (and what we do not know) about the institutional factors that spur VC activity. This paper tries to close that gap, through a systematic survey of the existing literature on the institutional and related determinants of VC activity. Grounding on the seminal work of North (1990), we consider formal (e.g. laws and formal rules) and informal (e.g. cultural norms and tacit codes of behaviour) institutions which are found in the extant empirical economics and management literature to affect the development of the VC industry. Building on this careful review, our paper aims to propose interesting avenues for future research in this domain.

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Section: Financial Market-related Conditionssupporting

confidence: 87%

Section: Financial Market-related Conditionsmentioning

confidence: 87%

Section: Fiscal Policymentioning

confidence: 89%