Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
}
TY - JOUR
T1 - The impact of fund inflows on staging and investment behaviour
AU - Lauterbach, Rainer
AU - Hass, Lars Helge
AU - Schweizer, Denis
PY - 2014/9
Y1 - 2014/9
N2 - This article demonstrates that increased inflows of capital into private equity and venture capital funds can influence the investment behaviour of fund managers by increasing staging intensity, increasing amount per financing round, and accelerating speed of capital allocation. These changes do not appear to be related to expectations of improved investment performance. The study extends the work of Gompers and Lerner who interpret these inflows as demand pressure for venture capital securities to drive up prices during periods of high inflows. Using a unique dataset, the study examines the effects of this pressure on investment behaviour.
AB - This article demonstrates that increased inflows of capital into private equity and venture capital funds can influence the investment behaviour of fund managers by increasing staging intensity, increasing amount per financing round, and accelerating speed of capital allocation. These changes do not appear to be related to expectations of improved investment performance. The study extends the work of Gompers and Lerner who interpret these inflows as demand pressure for venture capital securities to drive up prices during periods of high inflows. Using a unique dataset, the study examines the effects of this pressure on investment behaviour.
KW - behavioural finance
KW - China
KW - decision making
KW - private equity
KW - staging
KW - venture capital
U2 - 10.1177/0266242613500504
DO - 10.1177/0266242613500504
M3 - Journal article
VL - 32
SP - 644
EP - 666
JO - International Small Business Journal
JF - International Small Business Journal
SN - 0266-2426
IS - 6
ER -