486
Venture Capital and Private Equity Contracting
Table 16.4 Multivariate This table presents OLS and 2SLS estimates of the number of hours per month that the variables are as defined in Table 16.1. Models 1–4 use OLS; Model 5 uses 2SLS where preferred equity dummy, the fraction of veto rights, board rights, and other “special” venture capital fund manager’s ownership share, the number of hours per month from number of investment months, exit outcomes, and the capital under management per instruments: the venture capital fund manager’s ranking of project risk and entrepreneur country of the investment, a dummy for entrepreneurs in foreign countries, a late-stage for the venture capital fund manager, dummy variables for the investment and exit years, HCCME is used. *, **, *** represent estimates significant at the 1%, 5%, and 10% Independent Variables
Constant
Model 1 OLS
Model 2 OLS
Coefficient
t-Statistic
Coefficient
t-Statistic
10.75
2.00*
1.43
0.17
Contractual Terms and Legal Conditions Convertible Security (H16.1)
2.25
0.51
1.88
0.50
Ownership % (H16.1)
4.55
0.30
20.83
1.50
Veto Rights (H16.2)
13.44
4.98***
7.96
2.10**
Board Rights (H16.2)
0.004
0.48
0.001
0.15
4.67
0.56
9.77
1.12
8.35
2.13**
10.50
3.22***
0.46
0.10
2.85
0.63
0.49
5.60***
0.51
0.72
Special Control Rights (H16.2) Country Legality (H16.3) Project- and Environment-Related Risk Project Risk Ranking Entrepreneur Experience Ranking Late or Buyout Stage Medical/Biotechnology Computer/Electronics Communications/Internet Foreign Investment
Investment Characteristics and Performance Hours from Syndicated Partners Investment Rounds (Log of) Book Value Investment Months IPO Exit Acquisition Exit