Developing venture capital when institutions change
Year: 2015
Type: article
Abstract: This paper investigates the impact of formal institutional change on the venture capital (VC) development process. Specifically, it contrasts VC development processes taking place in stable and volatile formal institutional environments. It shows that formal institutional change – both improvement and decline – facilitates the VC development process, and that more change is more beneficial to that process than less change. Macro institutional change plays a larger role in facilitating the VC development process than micro institutional change, and changes in two macro-level dimensions – rule of law and political stability – have the largest positive impact on that process. Employing longitudinal interview and archival data from four emerging economies with a range of institutional change and quality levels, Botswana, Indonesia, Pakistan, and South Africa, empirical support is provided for the propositions.
Source: Venture Capital
Author: David Lingelbach
Institution: University of Baltimore
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2259759736