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dc.contributor.authorDevigne, David
dc.contributor.authorManigart, Sophie
dc.contributor.authorWright, Mike
dc.date.accessioned2021-01-07T14:27:17Z
dc.date.available2021-01-07T14:27:17Z
dc.date.issued2013en_US
dc.identifier.doi10.5465/ambpp.2013.12285abstract
dc.identifier.urihttp://hdl.handle.net/20.500.12127/6621
dc.description.abstractDrawing upon an escalation of commitment framework, this study investigates how differences between cross-border and domestic venture capital investors in access to information, social and structural factors affect their decision to terminate an unsuccessful investment. We track the exit outcome of 1060 venture capital investments in 684 European technology companies. Results show that domestic investors have a high tendency to escalate their commitment to a failing course of action. In contrast, cross-border investors terminate their investments efficiently, even when investing through a local branch. This is explained by cross-border investors having more limited access to soft information, a lower social involvement with the project and a lower embeddedness in the local economic and social environment, which are all factors that contribute to lower escalation of commitment. Local branches of cross-border investors are further shielded from escalation of commitment through structural safeguards. Domestic investors may hence benefit from mimicking the behavior of cross-border investors.en_US
dc.language.isoenen_US
dc.subjectVentue Capital Investorsen_US
dc.titleDistressed portfolio company exit and cross-border venture capital investorsen_US
dc.title.alternativeAcademy of Management Proceedingsen_US
vlerick.conferencedate9/08/2019-13/08/2013en_US
vlerick.conferencelocationOrlando, Florida, United Statesen_US
vlerick.conferencenameThe 2013 Academy of Management Annual Meetingen_US
vlerick.conferenceorganiserAcademy of Managementen_US
vlerick.knowledgedomainAccounting & Financeen_US
vlerick.typeconfpresConference Proceedingen_US
vlerick.vlerickdepartmentAFen_US
dc.identifier.vperid35884en_US


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