Remove Article Remove Firm-specific Risk Remove Specific Risk
article thumbnail

Risk-Seeking Corporate Governance

Reynolds Holding

In a new article, we propose that VCs have taken on a new corporate governance role: to persuade risk-averse founders to pursue high-risk strategies. Founders may be reluctant to take on so much risk. In our model, VCs address the divergence in risk preference by striking an implicit bargain with founders.

Finance 45
article thumbnail

Did SB21’s Changes to Delaware Corporate Law Harm Shareholders?

Reynolds Holding

ENDNOTES [1] [link] [2] [link] [3] Our simplified event study compares the returns of equal-weighted portfolios of DE Companies and Non-DE Companies without controls for firm-specific risk factors such as exposure to market risk, size or other industry-specific performance. [4] available here.