The management of agency problems by venture capitalists in Thailand

• Main Author: Mahamad, Prasit
• Published: University of Manchester 2008
• Subjects: 332.67222
• Online Access: http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.493887

This thesis considers the financing problem of firms by applying the concept of agency theory to exploring the role of VCs in providing funds to entrepreneurs and firms and exploring the interactions between these two groups; i.e. VCs and VC backed firms with the particular focus on Thailand. The objectives of the research are to extend previous research on VCs in the context of an emerging economy, in this case Thailand, etc. Three research questions were formulated in response to what is believed to be a lack of emphasis on these issues in the literature, especially in regard to emerging economies, a). How do VCs and their investees in Thailand manage their agency problems?. b).What effect do these approaches to managing agency costs have on the relationships between VCs and their investees? c). Do VCs in Thailand practice value generation or value protection strategies? Do entrepreneurs benefit from the observed practices and in what other ways are investees affected? Eight propositions were formulated in order to address the research questions.