THE DEMAND FOR INFORMATION BY INVESTORS
This chapter explores the venture capital investor’s (VCI’s) demand for information after initial investment funds have been committed to the investee (MSF). Within the book’s principal-agent framework, the role of information has been seen to be crucial (see Chapter 4). Following this theoretical lead through to empirical analysis, the focus of this chapter is on data, in the sense of the information gathered in accounting form by investors. Such accounting data clearly reflect the information requirements of this increasingly important specialist investor. It is known from Chapter 5 that the forms in which data were gathered provide a unique opportunity to study the methods that these sophisticated users of investees’ accounting information deploy to meet their information needs.