Essays on Entrepreneurial Finance

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dc.contributor Aalto-yliopisto fi
dc.contributor Aalto University en Paaso, Mikael 2020-01-13T10:01:06Z 2020-01-13T10:01:06Z 2019
dc.identifier.isbn 978-952-60-8576-0 (electronic)
dc.identifier.isbn 978-952-60-8575-3 (printed)
dc.identifier.issn 1799-4942 (electronic)
dc.identifier.issn 1799-4934 (printed)
dc.identifier.issn 1799-4934 (ISSN-L)
dc.description.abstract This dissertation consists of an introduction and three original essays. The first essay provides causal evidence that managers extrapolate when making real investment decisions. Managers of small, weather-sensitive businesses increase investment in response to temporary and weather-induced increases to their cash flows. This is consistent with the idea that their expectations of long term future cash flows have improved as a result of a temporary shock to current cash flows. Extrapolation has negative outcomes for these firms, with more firms shutting down in subsequent years. The second essay (joint with Deniz Okat) attempts to provide causal evidence that high levels of corporate cash holdings lead to wasteful investments (i.e. cash holdings create manager-shareholder agency problems). Using the exercise of the greenshoe option during the initial public offering (IPO) process as an exogenous cash infusion to firms, we show that firms receiving cash "randomly" make more acquisitions and that these acquisitions have lower returns.  The third essay (joint with Elina Koivisto) examines the role of entrepreneur appearance in early-stage investment decisions. We ask participants on Amazon's MTurk service to rate a series of real investment pitches from the Slush 100 pitching competition on three dimensions of appearance: The appearance of competence, trustworthiness and attractiveness. We find that entrepreneurs whose appearance is rated "more competent" are significantly more likely to attract angel investment and venture capital with weaker but still positive effects for the appearance of trustworthiness.   en
dc.format.extent 18 + app. 124
dc.format.mimetype application/pdf en
dc.language.iso en en
dc.publisher Aalto University en
dc.publisher Aalto-yliopisto fi
dc.relation.ispartofseries Aalto University publication series DOCTORAL DISSERTATIONS en
dc.relation.ispartofseries 102/2019
dc.relation.haspart [Publication 1]: Mikael Paaso. Extrapolation and Real Investment.
dc.relation.haspart [Publication 2]: Deniz Okat; Mikael Paaso. Do Corporate Cash Holdings Cause Agency Problems?
dc.relation.haspart [Publication 3]: Elina Koivisto; Mikael Paaso. Perfect Pitch: Appearance in Entrepreneurial Pitching.
dc.subject.other Finance en
dc.title Essays on Entrepreneurial Finance en
dc.type G5 Artikkeliväitöskirja fi Kauppakorkeakoulu fi School of Business en
dc.contributor.department Rahoituksen laitos fi
dc.contributor.department Department of Finance en
dc.subject.keyword entrepreneurial finance en
dc.subject.keyword corporate investment en
dc.subject.keyword angel investors en
dc.identifier.urn URN:ISBN:978-952-60-8576-0
dc.type.dcmitype text en
dc.type.ontasot Doctoral dissertation (article-based) en
dc.type.ontasot Väitöskirja (artikkeli) fi
dc.contributor.supervisor Torstila, Sami, Assoc. Prof., Aalto University, Department of Finance, Finland
dc.opn Meisner Nielsen, Kasper, Prof., Copenhagen Business School, Denmark
dc.rev Hyytinen, Ari, Prof., Hanken School of Economics, Finland
dc.rev Meisner Nielsen, Kasper, Prof., Copenhagen Business School, Denmark
local.aalto.acrisexportstatus checked 2020-01-27_1217
local.aalto.formfolder 2020_01_13_klo_10_02
local.aalto.archive yes

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