PL EN


2014 | XCI (91)/2 | 259-279
Article title

Mechanizmy kształtowania ładu korporacyjnego stosowane przez fundusze venture capital w inwestycjach w Polsce

Content
Title variants
EN
Corporate governence mechanisms used by venture capital funds in their investments in Poland
Languages of publication
PL
Abstracts
EN
The paper deals with the problem of development of the corporate governance structures by venture capital funds in Polish entrepreneurial companies they invested in. In the theoretical part there is a discussion on sources and consequences of agency relationship that exists between funds on one hand and founders and managers of the portfolio companies on the other one. Mechanisms used by VCs are presented that aim at alleviating agency costs, including: ownership structure, voting rights, contract writing, supervising by supervisory board, implementation of motivational mechanisms, investment syndication. Selected factors are presented that may impact the analyzed problem in the Polish context. In the empirical part the theoretical discussion is illustrated with an analysis of twelve companies that underwent initial public offering on the Warsaw stock exchange. Ownership structure and voting rights structure before and after IPO are presented, characteristics of contracts regulating relationship between investors and founders, composition of supervisory boards, characteristics of motivational tools. It was shown that VCs in their portfolio companies aim at possessing dominant ownership position. Contracts between them and entrepreneurs strongly protect interests of investors. They want to safeguard seats in supervisory boards, including chairman position. Motivational mechanisms in companies across several levels of the organizational structure are prepared in order to align investors’ and managers’ goals, usually by issuing shares or options for shares.
Year
Volume
Pages
259-279
Physical description
Dates
published
2014
Contributors
References
  • Ahlstrom D., Bruton G., Venture capital in Emerging Economies: Network and Institutional Change, Entrepreneurship Theory & Practice 2006/30/2.
  • Arthurs J., Busenitz L., The boundaries and limitations of agency theory and stewardship theory in the venture capitalist/entrepreneur relationship, Entrepreneurship Theory and Practice 2003/28/2.
  • Bliss R., A venture capital model for transitioning economies: the case of Poland, Venture capital 1999/1/3.
  • Bottazzi L., Da Rin M., Venture capital and the Growth of Innovative Firms in Europe, [w:] Corbetta G., Huse Morton, Ravasi D. (red.), Crossroads of Entrepreneurship, Kluwer Academic Publishers, New York 2004.
  • Bruining H., Verwaal M., Wright A., Lockett A., Manigart S., Firm size effects on syndication participation in European venture capital syndicates, ERIM Report Series Research in Management 2005.
  • Brutton G., Fried V., Manigart S., Institutional Influences on the Worldwide Expansion of Venture capital, Entrepreneurship Theory and Practice 2005/29/6.
  • Cumming D., Schmidt D., Waltz U., Legality and venture capital governance around the world, Journal of Business Venturing 2010/25.
  • Flynn D., Life cycles of new ventures organizations: Different factors affecting performance, Journal of Developmental Entrepreneurship 2001/6/1.
  • Kaplan S., Stromberg P., Characteristics, Contracts, and Actions: Evidence from Venture capitalist Analyses, The Journal of Finance 2004/59/5.
  • Karsai J., Wright M., Dudziński Z., Morovic J., Screening and valuing venture capital investments: evidence from Hungary, Poland and Slovakia, Entrepreneurship & Regional Development 1998/10.
  • Klonowski D., Private equity in Poland after two decades of development: evolution, industry drivers, and returns, Venture capital 2011/13/4.
  • Li Yong, Zahra S., Formal institutions, culture, and venture capital activity: A cross-country analysis, Journal of Business Venturing 2012/27.
  • La Porta R., Lopez-De-Silanes F., Shleifer A., Vishny R., Legal determinants of external finance, Journal of Finance 1997/52.
  • Schwienbacher A., Hege U., Palomino F., Venture capital Performance: Disparity Between Europe and the United States, Revue Finance 2009/30/1.
  • Suchard J., The impact of venture capital backing on the corporate governance of Australian initial public offerings, Journal of Banking & Finance 2009/33.
  • Shleifer A., Vishny R., A survey of corporate governance, Journal of Finance 1997/52/2.
Document Type
Publication order reference
Identifiers
ISSN
0081-6841
YADDA identifier
bwmeta1.element.desklight-1a4a6cff-c769-4205-a632-80c77ffa1c92
JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.