The DOI matches its Crossref record; 5 of the 5 references it cites were found in a registry or an index.
How Smart Is Smart Money? A Two‐Sided Matching Model of Venture Capital
Abstract
I find that companies funded by more experienced VCs are more likely to go public. This follows both from the direct influence of more experienced VCs and from sorting in the market, which leads experienced VCs to invest in better companies. Sorting creates an endogeneity problem, but a structural model based on a two‐sided matching model is able to exploit the characteristics of the other agents in the market to separately identify and estimate influence and sorting. Both effects are found to be significant, with sorting almost twice as important as influence for the difference in IPO rates.
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Cites
Sample Selection Bias as a Specification Error
Heckman, J. J. (1979) · Econometrica · doi:10.2307/1912352 · Cited by 28,779
Sampling-based approaches to calculating marginal densities
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College Admissions and the Stability of Marriage
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What do venture capitalists do?
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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
Financing Innovation: Evidence from R&D Grants
Howell, S. T. (2017) · American Economic Review · doi:10.1257/aer.20150808 · Cited by 1,138
Barber, B. M., Morse, A., & Yasuda, A. (2021) · Journal of Financial Economics · doi:10.1016/j.jfineco.2020.07.008 · Cited by 728
Venture Capital, Entrepreneurship, and Economic Growth
Samila, S., & Sorenson, O. (2011) · Review of Economics and Statistics · doi:10.1162/rest_a_00066 · Cited by 673
Field, L., Lowry, M., & Mkrtchyan, A. (2013) · Journal of Financial Economics · doi:10.1016/j.jfineco.2013.02.004 · Cited by 561
Are institutional investors with multiple blockholdings effective monitors?
Kang, J.-K., Luo, J., & Na, H. S. (2018) · Journal of Financial Economics · doi:10.1016/j.jfineco.2018.03.005 · Cited by 412
Metadata
- Authors
- SØRENSEN, M.
- Venue
- The Journal of Finance
- Publisher
- Wiley
- Published
- 2007-11-28
- Volume
- 62
- Issue
- 6
- Pages
- 2725-2762
- ISSN
- 0022-1082 (ISSN-L)
- 1540-6261
- OpenAlex
- W3124616546
- Cited by
- 1,007
- References
- 5
- FWCI
- 149.02
- Type
- journal article
- Language
- en
- Open access
- closed
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- SØRENSEN, M. (2007). How Smart Is Smart Money? A Two‐Sided Matching Model of Venture Capital. The Journal of Finance. https://doi.org/10.1111/j.1540-6261.2007.01291.x
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