Financing Risk and Innovation

被引：81
|
作者：
Nanda, Ramana [1 ]
Rhodes-Kropf, Matthew [1 ]
机构：
[1] Harvard Univ, Boston, MA 02163 USA
来源：
MANAGEMENT SCIENCE | 2017年 / 63卷 / 04期
关键词：
innovation; venture capital; investing; experimentation; real options; financing risk; PRIVATE EQUITY; ROLLOVER RISK; INVESTMENT; MARKET; MODEL; FIRMS; EQUILIBRIUM; INFORMATION; EVOLUTION; IMPACT;
D O I：
10.1287/mnsc.2015.2350
中图分类号：
C93 [管理学];
学科分类号：
12 ; 1201 ; 1202 ; 120202 ;
摘要：
We provide a model of investment in new ventures that demonstrates why some places, times, and industries should be associated with a greater degree of experimentation by investors. Investors respond to financing risk, a forecast of limited future funding, by modifying their focus to finance less innovative firms. In equilibrium, financing risk disproportionately impacts innovative ventures with the greatest real option value by creating a trade-off between protecting the firm from financing risk and maximizing its real option value. We propose that extremely novel technologies may need "hot" financial markets to get through the initial period of discovery or diffusion.
引用
收藏
页码：901 / 918
页数：18
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