Trust me! A study of Corporate Governance in Corporate Venture Capital

Sammanfattning: The present study investigates how Corporate Governance (CG) is exercised in the context of Corporate Venture Capital (CVC), through a single-case study of a Corporate Venture Capital Investor (CVCI) and its Portfolio Company (PC). Applying Roberts (1991, 2001) theory of accountability, the present study finds that socializing rather than hierarchical forms of accountability are dominant in the relationship between the CVCI and the PC, contrary to conventional theory on CG in VC. Moreover, the case indicates that this accountability structure leaves room for mutual influence between the CVCI and the PC, while rendering accounting information less value-relevant than typically assumed by researchers. Previous research has highlighted considerable differences between VC and the subset that is CVC across a wide spectrum of topics, but governance has thus far been assumed consistent with conventional VC research. Accordingly, the present study serves to highlight an inconsistency in the treatment of CVC as a research topic.