Capital structure of venture capital finance under double moral hazard and risk aversion of entrepreneur
风险规避、双边道德风险与风险投资的融资结构

This paper analyzes a venture capital financing model under the double moral hazard problem, in which the entrepreneur is risk-averse.Using the variational method,we find that second-best financial structure is nonlinear.Then we use the numerical method to solve the problem where restricting the financing structures.It comes out that the optimal three-section linearity structures mostly show the characteristic of the convertible securities.The results also show that the loss of utility of entrepreneur cause...