Abstract
The purpose of this paper is to examine how learning about an entrepreneurial project is impacted by asymmetric information. In this paper, a unique data set about entrepreneurial firm’s planned capital appropriation is presented to estimate the effect of new information on entrepreneurial firm’s valuation. It is demonstrated that only precise and unbiased information allows for early identification. of promising projects. However, it is found that entrepreneurs try to manipulate information disclosed to the VC to ensure continuation of the project. This paper is the first to show empirical evidence for these theories.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
