The impact of fund inflows on staging and investment behaviour

Rainer Lauterbach, Lars Helge Hass, Denis Schweizer

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

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.
Original languageEnglish
Pages (from-to)644-666
Number of pages23
JournalInternational Small Business Journal
Volume32
Issue number6
Early online date30 Jul 2014
DOIs
Publication statusPublished - 1 Sep 2014

Keywords

  • behavioural finance
  • China
  • decision making
  • private equity
  • staging
  • venture capital

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