Citation

Discussion Paper Details

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Title: Debt or Equity? The Role of Venture Capital in Financing the New Economy in Germany

Author(s): David B Audretsch and Erik Lehmann

Publication Date: November 2002

Keyword(s): corporate governance, entrepreneurship, New Economy and venture capital

Programme Area(s): Industrial Organization

Abstract: Using a dataset of the firms listed on the Neuer Markt in Germany, this Paper demonstrates that venture backed firms differ from firms with other financial resources, especially debt. Thus, the results of this study provide evidence for the hypothesis that small and innovative firms are more likely to be financed by venture capitalists instead of banks. We also provide evidence that the presence of venture capitalists enhances the growth rates of firms positively.

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Bibliographic Reference

Audretsch, D and Lehmann, E. 2002. 'Debt or Equity? The Role of Venture Capital in Financing the New Economy in Germany'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=3656