Local Bias in Venture Capital Investments

摘要：

This paper extends the literature on local bias by examining the context of venture capital (VC) finance. Based on a sample of US VC investments between 1980 and 2000, we find older VCs, and VCs with more previous investment experience exhibit stronger local bias. This finding is markedly different than that reported for mutual funds where older mutual funds exhibit less local bias. We argue this difference is due to the two-sided selection process in VC markets. We further show that distance matters for the eventual performance of VC investments, although differences in performance are attributable to self selection.

关键词： Local bias venture capital

作者: Na Dai Douglas Cumming

作者单位: Anderson Schools of Management University of New Mexico Albuquerque,NM 87131 Schulich School of Business 4700 Keele Street Toronto,Ontario M3J 1P3 Canada

会议类型: 国际会议

会议名称: 2008年中国金融国际年会

会议地点: 大连

会议语种:英文

页码: 1-35

在线出版日期: 2008-07-02（万方平台首次上网日期，不代表论文的发表时间）