The DOI matches its Crossref record; 1 of the 1 references it cites were found in a registry or an index.
The Allocation of Control Rights in Venture Capital Contracts
Open accessAbstract
Venture capitalists often hold extensive control rights over entrepreneurial companies, including the right to fire entrepreneurs. This article examines why, and under what circumstances, entrepreneurs would voluntarily relinquish control. Control rights protect the venture capitalists from hold-up by the entrepreneurs. This provides the correct incentives for the venture capitalists to search for a superior management team. Wealth-constrained entrepreneurs may give up control even if the change in management imposes a greater loss of private benefit to them than a monetary gain to the company. The model also explains why entrepreneurs accept vesting of their stock and low severance.
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
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
Cited by
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
Information and the Change in the Paradigm in Economics
Stiglitz, J. E. (2002) · American Economic Review · doi:10.1257/00028280260136363 · Cited by 1,455
Toward a Comparative Institutional Analysis
Aoki, M. (2002) · Journal of Institutional and Theoretical Economics · doi:10.1628/0932456022975150 · Cited by 1,200
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
Colombo, M. G., & Grilli, L. (2010) · Journal of Business Venturing · doi:10.1016/j.jbusvent.2009.01.005 · Cited by 686
Metadata
- Authors
- Hellmann, T.
- Venue
- The RAND Journal of Economics
- Publisher
- Wiley
- Published
- 1998
- Volume
- 29
- Issue
- 1
- Pages
- 57
- ISSN
- 0741-6261 (ISSN-L)
- OpenAlex
- W2079685316
- Cited by
- 705
- References
- 1
- FWCI
- 77.12
- Type
- journal article
- Language
- en
- Open access
- green
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: The Allocation of Control Rights in Venture Capital Contracts. https://app.cochat.ai/papers/10.2307/2555816
- The paper
- Hellmann, T. (1998). The Allocation of Control Rights in Venture Capital Contracts. The RAND Journal of Economics. https://doi.org/10.2307/2555816
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.
