Title: Adequacy of agency theory in explaining the venture capitalist-entrepreneur relationship: a firm life-cycle perspective
Authors: Swati Panda
Addresses: College of Business, University of North Texas, USA
Abstract: This paper explores the adequacy of agency theory in explaining the venture capitalist (VC)-entrepreneur relationship through a firm life-cycle perspective. The findings indicate that advanced stage relationships suffer severely from agency risks while early stage relationships are less affected. The findings have important theoretical implications, as they propose boundary conditions along which agency theory can be applied to the VC-entrepreneur relationship. VCs and entrepreneurs can utilise the recommendations for better decision making, leading to an improved working relationship.
Keywords: agency theory; entrepreneurship; India; information asymmetry; goal incongruence; venture capital.
International Journal of Entrepreneurship and Small Business, 2018 Vol.34 No.3, pp.309 - 329
Received: 01 Sep 2016
Accepted: 10 Oct 2016
Published online: 22 Jun 2018 *