Found 34 article(s) for author 'Josh Lerner'

Making Private Data Accessible in an Opaque Industry: The Experience of the Private Capital Research Institute

Making Private Data Accessible in an Opaque Industry: The Experience of the Private Capital Research Institute. Josh Lerner, December 2015, Paper. “The level of interest in alternative investments, and private capital in particular (by which we mean both venture capital and private equity), has been intense over the past decade. This interest has stemmed from both investors’ needs for attractive returns and the policy questions around this rapidly growing asset class. Returns from the United States publicly traded equities, the mainstays of investment portfolios for individuals and institutions, have been weak for much of this period, while low (and rising) interest rates suggest limited future returns for bonds. Many other classes of alternative investments, such as hedge funds, have struggled in recent years to match market benchmarks. Concurrently, many public pension funds are facing severe shortfalls, and other institutional investors—from university endowments to sovereign wealth funds—are seeking additional funds to fulfill ambitious agendas …” Link

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Financial Patent Quality: Finance Patents After State Street

Financial Patent Quality: Finance Patents After State Street. Josh Lerner, November 2015. “In the past two decades, patents of inventions related to financial services (“finance patents”), as well as litigation around these patents, have surged. One of the repeated concerns voiced by academics and practitioners alike has been about the quality of these patents in particular, and business method patents more generally. In particular, because so much of the prior work in these areas has not been patented, concerns have been expressed as to the extent to which the awards reflect this knowledge…Link

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The Globalization of Angel Investments

The Globalization of Angel Investments. Josh Lerner, September 2015, Paper, “The last decade has seen a rapid expansion and deepening of the types of vehicles that fund start-up firms in the U.S. and worldwide. In particular, we have seen a growing role of angel groups and other more “individualistic” funding options for start-ups, such as super angels or crowd sourcing platforms. While venture capital remains concentrated in a few metropolitan areas, mostly in the United States, the amount of angel investments appear to be increasing in many nations (Wilson and Silva, 2013). But one could argue that the funding of new ventures by wealthy individuals…Link

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The Leahy-Smith America Invents Act: A Preliminary Examination of its Impact on Small Businesses

The Leahy-Smith America Invents Act: A Preliminary Examination of its Impact on Small Businesses. Josh Lerner, June 2015, Paper. “The Leahy-Smith America Invents Act of 2011 (AIA) was enacted into law on Sept. 16, 2011. Section 3 of the AIA amended U.S. patent law by changing the “first-to-invent” (FTI) system to a “first-inventor-to-file” (FITF) system, arguably the most substantive change in U.S. patent law since the Patent Act of 1952. Cognizant of the potential economic effects of this change, Congress mandated in AIA that the Small Business Administration (SBA) conduct a study of the impact of the law…Link

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Lost in the Clouds: The Impact of Changing Property Rights on Investment in Cloud Computing Ventures

Lost in the Clouds: The Impact of Changing Property Rights on Investment in Cloud Computing Ventures. Josh Lerner, May 2015, Paper. “Our analysis seeks to understand the impact of changing allocations of property rights on investment in new firms. We focus on the Cartoon Network, et al. v. Cablevision decision in the U.S., which narrowed the protection enjoyed by content creators (e.g., movie studios) and gave greater rights to downstream technology firms, as well as decisions in France and Germany that took an opposite view. Our findings regarding relative venture capital investment in the U.S. and Europe…Link

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The use and misuse of patent data: Issues for corporate finance and beyond

The use and misuse of patent data: Issues for corporate finance and beyond, By Josh Lerner, March 2015, Paper.

“In the past several years, an increasing number of papers in the finance, accounting, and related literatures have made use of patent data. This growth has reflected the broadening of the topics seen as relevant to corporate finance researchers. As Zingales (2000) argued, the wave of initial public offerings of purely human capital firms, such as consultant firms, and even technology firms whose main assets are the key employees, is changing the very nature of the firm…. The changing nature of the firm forces us to reexamine much of what we take for granted in corporate finance. Not only is innovation critical in many cases to firm survival—witness the fates of firms which failed to successfully innovate, such as Kodak, Motorola, and Xerox—but it illustrates the critical issues that motivate corporate finance theory more generally.” Link


Private Equity, Jobs, and Productivity

Private Equity, Jobs, and Productivity. Josh Lerner, 2014, Paper. “Private equity critics claim that leveraged buyouts bring huge job losses and few gains in operating performance. To evaluate these claims, we construct and analyze a new dataset that covers US buyouts from 1980 to 2005. We track 3,200 target firms and their 150,000 establishments before and after acquisition, comparing to controls defined by industry, size, age, and prior growth. Buyouts lead to modest net job losses but large increases in gross job creation and destruction. Buyouts also bring TFP gains at target firms...” May require purchase or user account. Link

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Adding Value Through Venture Capital in Latin America and the Caribbean

Adding Value Through Venture Capital in Latin America and the Caribbean, Josh Lerner, October 13, 2014, Paper. “Venture capital (VC) investment has long been recognized as an engine for economic growth and development. Unlike bank loans, where the entrepreneur receives money and is left alone as long as the payments arrive on the pre-arranged schedule, venture capital investments add the quality of active investing to the cash infusion. In exchange for taking on the risk of young companies in uncertain environments, venture capitalists receive…” Link

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The Disintermediation of Financial Markets: Direct Investing in Private Equity

The Disintermediation of Financial Markets: Direct Investing in Private Equity. Victoria Ivashina, Josh Lerner, January 13, 2014, Paper. “This is the first large-sample study of direct private equity investments by institutional investors. The analysis uses a proprietary dataset of all such investments by seven large institutional investors over twenty years. Despite the substantial fee discounts, we find little evidence of attractive relative performance by direct investments. In particular, co-investments underperform traditional fund investments…” May require purchase or user account. Link Verified October 11, 2014

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Bridging the Gap? Government Subsidized Lending and Access to Capital

Bridging the Gap? Government Subsidized Lending and Access to Capital. Josh Lerner, March 2013, Paper. “For the past two decades, fair value accounting—the practice of measuring assets and liabilities at estimates of their current value—has been on the ascent. This marks a major departure from the centuries-old tradition of keeping books at historical cost. It also has implications across the world of business, because the accounting basis—whether fair value or historical cost—affects investment choices and management decisions, with consequences for aggregate economic activity…”  Link 

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