Black and Gilson (1998Black, B. S., & Gilson, R. J. (1998). Venture capital and the structure of capital markets: banks versus stock markets. Journal of Financial Economics, 47(3), 243-277. doi: 10.1016/S0304-405X(97)00045-7 https://doi.org/10.1016/S0304-405X(97)00...
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Economies with more developed capital market are more active in private equity than economy centered on banks. |
Jeng and Wells (2000Jeng, L., & Wells, P. C. (2000). The determinants of venture capital funding: evidence across countries. Journal of Corporate Finance, 6(3), 241-289. doi: 10.1016/S0929-1199(00)00003-1 https://doi.org/10.1016/S0929-1199(00)00...
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1) IPO as driving force for Private Equity investments; |
2) Government policies can have a strong impact in Venture Capital market. |
Balboa and Martín (2004Balboa, M., & Martí, J. (2004, June/July). An integrative approach to the determinants of private equity fundraising. Proceedings of the EFMA 2004 Basel Meetings Paper, Basel, Switzerland. ) |
The volume growth in t of investments in Private Equity is partially explained by the market liquidity in t-1 |
Gompers and Lerner (2001Gompers, P., & Lerner, J. (2001). The venture capital revolution. Journal of Economic Perspectives, 15(2), 145-168. doi: 10.1257/jep.15.2.145 https://doi.org/10.1257/jep.15.2.145...
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The level of the market liquidity influences the level of investments in Private Equity |
Gompers and Lerner (1998Gompers, P. A., & Lerner, J. (1998). What drives venture fundraising? Brooking Papers on Economic Activity: Microeconomics, 149-204. Retrieved from http://www.brookings.edu/~/media/projects/bpea/1998-micro/1998_bpeamicro_gompers.pdf
http://www.brookings.edu/~/media/project...
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1) The annual growth in Private Equity is affected by regulatory changes relating to pension funds, the growth of the economy as a whole, the fund's performance in question and its reputation; |
2) The tax on capital gains also influence the Private Equity activity |
Cumming, Fleming and Schwienbacher (2006Cumming, D., Fleming, G., & Schwienbacher, A. (2006). Legality and venture capital exits. Journal of Corporate Finance, 12(2), 214-245. doi: 10.1016/j.jcorpfin.2004.12.004 https://doi.org/10.1016/j.jcorpfin.2004....
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The quality of the legal system is more likely to facilitate the activities of private equity than the size of the stock market. The legal origin and accounting standards have significant impact on the governance of private equity investments. |
Armour and Cumming (2008Armour, J., & Cumming, D. (2008). Bankruptcy law and entrepreneurship. American Law and Economics Association, 10(2), 303-350. doi: 10.1093/aler/ahn008 https://doi.org/10.1093/aler/ahn008...
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Government programs hinder more, rather than help the development of private equity markets. |
Cullen and Gordon (2002Cullen, J., & Gordon, H. R. (2002). Taxes and entrepreneurial activity: theory and evidence for the U.S. [Working Paper nº 9015]. National Bureau of Economic Research, Cambridge, MA. ) |
Taxes affect the entry and exit of business. |
Megginsson (2002Megginsson, W. L. (2002). Towards a global model of venture capital? Journal of Applied Corporate Finance, 16(1), 89-107. doi: 10.1111/j.1745-6622.2004.tb00599.x https://doi.org/10.1111/j.1745-6622.2004...
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Countries with growing R&D, especially in the national universities and laboratories, are important for the capital industry risk. |
Schertler (2003Schertler, A. (2003). Driving forces of venture capital investments in Europe: a dynamic panel data analysis [Working Paper, nº 1172]. Kiel Institute for the World Economy, Kiel, Germany.) |
The number of employees in R&D and the number of patents as a proxy of human capital has strong significance in PE. |
Groh, Liechtenstein and Lieser (2010Groh, A. P., Liechtenstein, H. von, & Lieser, K. (2010). The European venture capital and private equity country attractiveness indices. Journal of Corporate Finance, 16(2), 205-224. doi: 10.1016/j.jcorpfin.2009.09.003 https://doi.org/10.1016/j.jcorpfin.2009....
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Investor protection and capital market are very important determinants for attractiveness of PE/VC market. |