Found 32 article(s) for author 'Josh Lerner'

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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Institutions and Venture Capital

Institutions and Venture Capital. Josh Lerner, February 2013, Opinion. “We survey the literature on venture capital and institutions and present a case study comparing the development of the venture capital market in the United States and Sweden. Our literature survey underscores that the legal environment, financial market development, the tax system, labor market regulations, and public spending on research and development correlate with venture capital activities across countries. Our case study suggests these institutional differences led to the later development of an active venture capital market in Sweden compared with the United States. In…”  Link verified March 28, 2014

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Doing Well by Doing Good? Community Development Venture Capital

Doing Well by Doing Good? Community Development Venture Capital. Josh Lerner, September 2012, Paper, “This paper examines the investments and performance of community development venture capital (CDVC). We find substantial differences between CDVCs and traditional VCs: CDVC investments are far more likely to be in nonmetropolitan regions and in regions with little prior venture activity. CDVC investments are likely to be in earlier stage investments and in industries outside the venture capital mainstream that have lower probabilities of successful exit. Even after controlling for this unattractive transaction mixture, the probability of a CDVC investment being successfully exited is lower. One benefit of CDVCs may be their effect in bringing traditional VCs to underserved regions — controlling for the presence of traditional VC investments, each additional CDVC investment results in an additional 0.06 new traditional VC firms in a region.Link

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