Publication:
Private equity and venture capital instruments, a study into their use and intention.

dc.contributor.author Thomson, Dean en_US
dc.date.accessioned 2022-03-21T16:02:11Z
dc.date.available 2022-03-21T16:02:11Z
dc.date.issued 2005 en_US
dc.description.abstract Moral Hazard and the Agency Costs thereof have long been accepted arguments in venture finance theory and have therefore long been accepted shortcomings in the venture capitalist / entrepreneur relationship. In psychological experiments including economic it has been shown that human beings prefer to act in a reciprocal manner that reduces any inequity in a relationship. Humans who expect to receive an unfair and inequitable position in a relationship, will take steps to rectify that position. Specifically, if a venture capitalist expects the entrepreneur to unfairly extract private benefits from the investee company post investment by the venture capitalist, then he or she will impose costly controls and monitoring mechanisms in place to prevent that. All relationships that impose controls and monitoring mechanisms are inefficient, as opposed to Advising the investee which draws upon the skills of the venture capitalist and is generally efficient. The venture capital industry is comprised of intelligent and professional people who can recognise inefficiency easily. Indeed, this is how they make poorly managed companies into profitable trade sales or IPO s. The online survey completed for this thesis poses questions that attempt to show that venture capitalists and entrepreneurs are not locked in an antagonistic relationship where each merely acts in a self interested way. This thesis concludes that venture capitalists and entrepreneurs do work in a reciprocal relationship recognising the substantial efficiency gains to be made by doing so. en_US
dc.identifier.uri http://hdl.handle.net/1959.4/31100
dc.language English
dc.language.iso EN en_US
dc.publisher UNSW, Sydney en_US
dc.rights CC BY-NC-ND 3.0 en_US
dc.rights.uri https://creativecommons.org/licenses/by-nc-nd/3.0/au/ en_US
dc.subject.other Venture capital -- Australia; Capital investments -- Australia; Private equity -- Australia; New business enterprises --- finance -- Australia; Corporations -- Australia -- investor relations; Entrepreneurship -- Australia en_US
dc.title Private equity and venture capital instruments, a study into their use and intention. en_US
dc.type Thesis en_US
dcterms.accessRights open access
dcterms.rightsHolder Thomson, Dean
dspace.entity.type Publication en_US
unsw.accessRights.uri https://purl.org/coar/access_right/c_abf2
unsw.identifier.doi https://doi.org/10.26190/unsworks/17590
unsw.relation.faculty Business
unsw.relation.originalPublicationAffiliation Thomson, Dean, Banking & Finance, Australian School of Business, UNSW en_US
unsw.relation.school School of Banking & Finance *
unsw.thesis.degreetype Masters Thesis en_US
Files
Original bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
whole.pdf
Size:
581.73 KB
Format:
application/pdf
Description:
Resource type