Chapter 11: Venture capitalists, investment appraisal and accounting information: a comparative study of the US, UK, France, Belgium and Holland
Page 238 11. Venture capitalists, investment appraisal and accounting information: a comparative study of the US, UK, France, Belgium and Holland Sophie Manigart, Koen De Waele, Mike Wright, Ken Robbie, Philippe Desbrières, Harry Sapienza and Amy Beekman Introduction Evidence is now emerging of the contrasting approaches used by venture capitalists to appraise investments in unquoted firms (Wright and Robbie, 1996a). However, there is very limited evidence which compares approaches in different countries. This appears to be an important omission since it is increasingly recognised that culture plays a significant role in the conduct of business (Hofstede, 1984) such that important differences may be apparent between countries in the operation of similar activities. Further, HampdenTurner and Trompenaars (1993) show that the values of managers vary between countries; on this basis they group managers in the US, UK and the Netherlands together in a separate group from those in France, Japan and Germany. There are also marked differences in governance systems between countries. The US and UK have been characterised as having marketbased systems where the disciplinary role of capital markets and the market for corporate control are important. In continental Europe, governance systems can be viewed as networkoriented (Moerland, 1995). In respect of venture capital and related industries previous studies have highlighted the heterogeneity of such markets across differing countries (Wright et al., 1992; Manigart, 1994; Sapienza et al., 1996). Sapienza et al., who covered the same countries as in this study, find that in respect of...
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