The Allocation and Transfer of Control Rights between Capitalists and Entrepreneurs
The allocation of control rights in venture capital affects the firm's value and benefit of venture capitalists and entrepreneur.This paper analyzes how the control rights be allocated and transferred.We argue that the control rights should be a state- contingent control right,and the residual claim rights and residual control rights are independent and incompletely corresponding.The conclusions are consistent with the existing control theory and empirical evidences.