Work in Progress


  • “The Added-Value of Network Connections in Entrepreneurial Finance” 
    Entrepreneurs are usually exhorted to attract the best networked investors. We provide further insights into this advice by estimating network effects in the performance of entrepreneurial ventures. We show dimensions that are critical in this estimation, such as the consideration for startups’ connections, common connections among investors, and the decreasing returns to network centrality, and estimate their relative importance. We estimate networks effects using an original database of connections among startups, investors and individuals with relevant roles in California, collected from web-based sources, resulting in a network of nearly 1 million connections.
  • “Random Network Formation in Entrepreneurial Finance: A Simple Model and Evidence”

    We propose a simple two-mode random network formation model aimed to mimic the properties of an entrepreneurial finance network, and calibrate it with data of a network of startups and investors in California. In the model investors match with startups at random, and find about other investment opportunities by other investors by invitations. This model helps explains features of the observed network such as its degree distribution, average distance, and clustering.

  • What causes social entrepreneuship? Emancipation as an explanatory framework. With Santiago A. Sena

What causes the emergence of social entrepreneurship at a societal level? This paper proposes that emancipatory theory (Welzel, 2013) provides an adequate theoretical framework in which to comprehensively understand the emergence of social entrepreneurship as an emancipatory phenomenon (Rindova et al., 2009). We first theoretically identify the elements of the human empowerment process (action resources, emancipative values and civic entitlements, in this sequence) that drive the emergence of social entrepreneurship. Second, we empirically test our propositions by explaining GEM’s SE rate in a panel of countries for the years 2009 and 2015. Our empirical results confirm the relevance of the main elements proposed by our theory.


Published Papers and Forthcoming

Forthcoming. Venture Capital: An International Journal of Entrepreneurial Finance.

We empirically explore the importance of networks in the match formation of startups and investors. Using a massive network of connections from the entrepreneurial finance setting in California, we estimate a matching model introducing network distance as a key determinant of the value of a prospective match. We find that distance drives matching value and moderates preferences for experience and education. While we corroborate that there is significant sorting along these preferences in realized matches, our results indicate that network distance can potentially outweigh their impact, emphasizing the role of networks in alleviating matching frictions in these markets.

We exploit a panel of 72 US dollar-denominated bonds issued by Latin American publicly listed firms between 1996 and 2004, a period of regional financial crises, to answer the following three questions: (1) Is sovereign risk a statistically and economically significant determinant of the corporate credit spread, controlling for firm- and bond-specific characteristics? (2) If yes, do market participants apply the sovereign ceiling rule adopted by rating agencies in the pricing of our bond market data? And (3) how do market views compare with the rating agencies ceiling policy for each corporate bond? We find strong evidence of an economically and statistically significant effect of sovereign risk on corporate spreads across different panel econometric specifications and bonds. Moreover, markets do not apply the ceiling rule in 77–90% of the bonds we sample and these findings are consistent with rating agencies’ policies toward the latter for about 50% of the firms. These results are robust to the inclusion of firm- and bond-specific variables derived from the structural approach to credit risk and to the business cycle in each country.

This paper researches the sources of stock market risk influencing the pricing of 921 Latin American stocks and computes their corresponding opportunity cost (COE) over the period 1997–2004 by firm and sector. Running an adjusted version of the Capital Asset Pricing Model (CAPM) it finds that systematic risk accounts on average for more than 32% of COE total variance. This implies that potential CAPM mispricing related to undiversified idiosyncratic risk in Latin America has been relatively lower (but absolutely higher) than in United States and other European and Asian stock markets (such as the United Kingdom, Canada or Japan). A first robustness test for the omission of international sources of un-diversifiable risk suggests that both global market and real currencies portfolios do not add significant information to domestic market portfolios. Moreover, a second robustness check offers further evidence that well-diversified portfolios constructed by sorting stocks according to their size and book-to-market ratios a la Fama and French do not improve the goodness of fit in the regressions based on the adjusted version of CAPM.

Book Chapters

  • 2012. “Public-private cooperation for gas provision in poor neighbourhoods of  Buenos Aires: institutional framework and impacts”with Cynthia Goytia and Pablo Sanguinetti. In Latin American Urban Development into the Twenty First Century: Towards a Renewed Perspective on the City. Edited by Dennis Rodgers, Jo Beall, and Ravi Kanbu. Palgrave Macmillan
  •  2010. “Securities Markets Regulations and Evaluations of the Degree of Implementation” In Capital Markets in the Southern Cone of Latin America: Convergence to International Standards and Integration. Ed. Alberto R. Musalem, 79-120, Buenos Aires: Prentice Hall.

Working Papers

Other Reports