The Political and Legal Determinants of Venture Capital Investments around the World

Bonini, Stefano; Aktuccar, Senem Alkan

doi:10.2139/ssrn.945312

Cited by 34 publications

(79 citation statements)

References 53 publications

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“…The underlying idea is that better laws facilitate investors' board representations and simplify the origination and the screening of the deals. Moreover, Bonini and Alkan (2009) show that VC investments are positively correlated with the quality of the entrepreneurial environment and that a favourable socioeconomic and investment environment has a strong and positive impact on the inception and development of VC investment activity.…”

Section: Ture Reviewmentioning

confidence: 97%

“…They conclude that IPOs are the strongest driving force of PE investing, while market capitalization turns out to be insignificant, which is not surprising given the fact that it is closely related to IPOs. The importance of IPO markets is underlined as well by Bonini and Alkan (2009), who employ a panel data set of 16 countries, and 15 explanatory variables from 1995 to 2002. They find that active IPO markets are significant factors in explaining the cross-country variation of the levels of investment.…”

Section: Ture Reviewmentioning

confidence: 99%

“…Gompers and Lerner (1998) and Bonini and Alkan (2009) argue that the level of interst rates in a country might be relevant in attracting VC. One theory is that level of interest rates should affect negatively the supply of venture capital since a high level of real interest rates reduces the attractiveness of risky investments.…”

Section: Ture Reviewmentioning

confidence: 99%

“…Institutional investors could hesitate investing in countries with exaggerated labour market protection and immobility. Jeng and Wells (2000) also find that labour market rigidities 5 , government programs for entrepreneurship and bankruptcy procedures contribute to explain a significant part of cross-country variations in VC investments. Further, Bonini and Alkan (2009) and Gompers and Lerner (1998) give evidence that a significant positive correlation between R&D expenditure and VC activity exists and Romain and van Pottelsberghe de la Potterie (2004b) find that the level of entrepreneurship interacts with the R&D capital stock, technological opportunities, and the number of patents.…”

Section: Schertler (2003) Uses Dynamic Panel Estimations To Identify mentioning

confidence: 99%

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Drivers of Private Equity Investment in CEE and Western European Countries

2010

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract A strong private equity market is a cornerstone for commercialization and innovation in modern economies. However, substantial differences exist in the relative amounts raised and invested in private equity across European countries. We investigate the macro-determinants of private equity investment in Europe, focusing on the comparison between CEE and Western European countries. Our estimations are based on a data set running from 2001 to 2008 and covers 14 Western European and three CEE countries. Applying robust estimation techniques we identify a 'robust' set of determinants of private equity activity in both regions. We find similarities as well as differences in the driving forces of private equity investments in Western European and CEE countries. Our results suggest that commercial bank lending, equity market capitalization, unit labour costs and corporate tax rates are significant determinants of private equity activity. Terms of use: Documents in

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Section: Ture Reviewmentioning

confidence: 97%

Section: Ture Reviewmentioning

confidence: 99%

Section: Ture Reviewmentioning

confidence: 99%

Section: Schertler (2003) Uses Dynamic Panel Estimations To Identify mentioning

confidence: 99%

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Drivers of Private Equity Investment in CEE and Western European Countries

2010

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“…These factors were proved in [10,15] works. The authors of work [10], during the empirical research, have uncovered a significant inflation impact on venture investment volume.…”

Section: The Research Overview Dedicated To the Development Of Venturmentioning

confidence: 93%

The problem of development of entrepreneurship and entrepreneurial education in Russia

Семенов

Еремеева

2016

SHS Web Conf.

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Abstract. Now in Russia the innovative model of development is implemented, so new instruments of innovative project financing are required. Hence, the necessary competences should be formed within the educational system. To study the influence of different factors on venture capital and entrepreneurial activity, the work considers the analysis of the different research papers, which study the determinants of the venture capital development. According to the results of testing, the possible hypotheses are outlined and verified. The analysis was performed on two datasets, which represent the annual data for Russia and the USA from 1994 to 2012. As the influence factors on the VC industry the model uses determinants both used in previous works and completely new. The latter are the level of small business development, the inventors' activity coefficient, and the level of information and communications industry development in a country. As a dependent variable, the total volume of venture investments, transformed into logarithmic scale is used. The result of the paper shows the primary factors of VC and technological entrepreneurship development, which also influence on the demand for entrepreneurial education.

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