The DOI matches its Crossref record; 6 of the 6 references it cites were found in a registry or an index.
Robust Financial Contracting and the Role of Venture Capitalists
Abstract
We derive a role for inside investors, such as venture capitalists, in resolving various agency problems that arise in a multistage financial contracting problem. Absent an inside investor, the choice of securities is unlikely to reveal all private information, and overinvestment may occur. An inside investor, however, always makes optimal investment decisions if and only if he holds a fixed‐fraction contract, where he always receives a fixed fraction of the project's payoff and finances that same fraction of future investments. This contract also eliminates any incentives of the venture capitalist to misprice securities issued in later financing rounds.
Overview
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Integrity signals
Registry
Cites
Statistics
Verification
Claims the paper makes
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Self-check
Percentages, sums and reported differences re-computed from the paper’s own numbers.
The self-check needs the paper’s full text.
Citations
Cites
Corporate financing and investment decisions when firms have information that investors do not have
Myers, S. C., & Majluf, N. S. (1984) · Journal of Financial Economics · doi:10.1016/0304-405x(84)90023-0 · Cited by 18,957
Determinants of corporate borrowing
Myers, S. C. (1977) · Journal of Financial Economics · doi:10.1016/0304-405x(77)90015-0 · Cited by 13,169
Corporate Financing and Investment Decisions When Firms Have InformationThat Investors Do Not Have
Myers, S., & Majluf, N. (1984) · doi:10.3386/w1396 · Cited by 6,745
What do venture capitalists do?
Gorman, M., & Sahlman, W. A. (1989) · Journal of Business Venturing · doi:10.1016/0883-9026(89)90014-1 · Cited by 1,371
The role of banks in reducing the costs of financial distress in Japan
Hoshi, T., Kashyap, A., & Scharfstein, D. (1990) · Journal of Financial Economics · doi:10.1016/0304-405x(90)90021-q · Cited by 1,213
The role of venture capital in the creation of public companies
Barry, C. B., Muscarella, C. J., Peavy, J. W., & Vetsuypens, M. R. (1990) · Journal of Financial Economics · doi:10.1016/0304-405x(90)90064-7 · Cited by 1,167
Cited by
N. Berger, A., & F. Udell, G. (1998) · Journal of Banking & Finance · doi:10.1016/s0378-4266(98)00038-7 · Cited by 3,690
“…capital investments to assure optimal exercise of production options and efficient stopping (Sahlman 1988, 1990, Chan, Siegel, and Thakor 1990, Admati and Pfleiderer 1994, Gompers 1995, Bergemann and Hege 1998),'7 control and the choice of equity/debt instrument (Gompers 1993, Marx 1993,…”
Discovery and creation: alternative theories of entrepreneurial action
Alvarez, S. A., & Barney, J. B. (2007) · Strategic Entrepreneurship Journal · doi:10.1002/sej.4 · Cited by 2,086
Syndication Networks and the Spatial Distribution of Venture Capital Investments
Sorenson, O., & Stuart, T. E. (2001) · American Journal of Sociology · doi:10.1086/321301 · Cited by 1,925
Why do venture capital firms exist? theory and canadian evidence
Amit, R., Brander, J., & Zott, C. (1998) · Journal of Business Venturing · doi:10.1016/s0883-9026(97)00061-x · Cited by 746
Venture capital financing, moral hazard, and learning
Bergemann, D., & Hege, U. (1998) · Journal of Banking & Finance · doi:10.1016/s0378-4266(98)00017-x · Cited by 727
Metadata
- Authors
- ADMATI, A. R., & PFLEIDERER, P.
- Venue
- The Journal of Finance
- Publisher
- Wiley
- Published
- 1994-06
- Volume
- 49
- Issue
- 2
- Pages
- 371-402
- ISSN
- 0022-1082 (ISSN-L)
- 1540-6261
- OpenAlex
- W2114279083
- Cited by
- 723
- References
- 6
- FWCI
- 53.20
- Type
- journal article
- Language
- en
- Open access
- closed
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
Are you an author, or do you see a problem with this page? Request a review
How to cite
Cite CoChat for the checks on this page, and the paper for its own findings.
- This page
- CoChat. (2026). Citation check: Robust Financial Contracting and the Role of Venture Capitalists. https://app.cochat.ai/papers/10.1111/j.1540-6261.1994.tb05146.x
- The paper
- ADMATI, A. R., & PFLEIDERER, P. (1994). Robust Financial Contracting and the Role of Venture Capitalists. The Journal of Finance. https://doi.org/10.1111/j.1540-6261.1994.tb05146.x
Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
