Imperial College London
Portrait Picture

Professor Ramana Nanda

Business School

Associate Dean Enterprise.Professor Entrepreneurial Finance
 
 
 
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Contact

 

+44 (0)20 7594 7394ramana.nanda CV

 
 
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Location

 

1.06A53 Prince's GateSouth Kensington Campus

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Summary

 

Publications

Citation

BibTex format

@article{Nanda:2017:10.1287/mnsc.2015.2350,
author = {Nanda, R and Rhodes-Kropf, M},
doi = {10.1287/mnsc.2015.2350},
journal = {Management Science},
pages = {901--918},
title = {Financing risk and innovation},
url = {http://dx.doi.org/10.1287/mnsc.2015.2350},
volume = {63},
year = {2017}
}
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RIS format (EndNote, RefMan)

TY  - JOUR
AB  - We provide a model of investment in new ventures that demonstrates why some places, times, and industries should be associated with a greater degree of experimentation by investors. Investors respond to financing risk, a forecast of limited future funding, by modifying their focus to finance less innovative firms. In equilibrium, financing risk disproportionately impacts innovative ventures with the greatest real option value by creating a trade-off between protecting the firm from financing risk and maximizing its real option value. We propose that extremely novel technologies may need “hot” financial markets to get through the initial period of discovery or diffusion.
AU  - Nanda,R
AU  - Rhodes-Kropf,M
DO  - 10.1287/mnsc.2015.2350
EP  - 918
PY  - 2017///
SN  - 0025-1909
SP  - 901
TI  - Financing risk and innovation
T2  - Management Science
UR  - http://dx.doi.org/10.1287/mnsc.2015.2350
UR  - http://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcApp=PARTNER_APP&SrcAuth=LinksAMR&KeyUT=WOS:000399362100001&DestLinkType=FullRecord&DestApp=ALL_WOS&UsrCustomerID=1ba7043ffcc86c417c072aa74d649202
VL  - 63
ER  -
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