Grandstanding in the venture capital industry
Article Abstract:
The hypothesis that young venture capital firms take companies earlier than older venture capital firms is developed and tested. Evidence from a sample of 433 initial public offerings (IPO) suggests that companies backed by young venture capital firms are younger and more underpriced at their IPO than those of established venture capital firms. Young firms also hold smaller-equity stakes and time the IPO to precede or coincide with raising money for follow-on funds.
Publication Name: Journal of Financial Economics
Subject: Economics
ISSN: 0304-405X
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
IPOs, acquisitions, and the use of convertible securities in venture capital
Article Abstract:
Implications of initial public offerings, acquisitions and convertible securities on gains of venture capitalists are examined. It is revealed that a venture capitalist gains more from acquisitions rather than initial public offerings.
Publication Name: Journal of Financial Economics
Subject: Economics
ISSN: 0304-405X
Year: 2006
User Contributions:
Comment about this article or add new information about this topic:
The timing of initial public offerings
Article Abstract:
An analysis of the tradeoff between the loss of entrepreneur's private benefits and gains from diversification at the time of initial public offer are assessed. The importance of the timing aspects of the IPO is also discussed.
Publication Name: Journal of Financial Economics
Subject: Economics
ISSN: 0304-405X
Year: 2005
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Evidence on the strategic allocation of initial public offerings. Why are European IPOs so rarely priced outside the indicative price range?
- Abstracts: A present value test of habits and the current account!. Precautionary saving and partially observed income. Generalizing the permanent - income hypothesis: revisiting Friedman's conjecture on consumption
- Abstracts: The structure of mutual fund charges. Predicting stock returns. Earnings and price momentum
- Abstracts: The role of syndicate structure in bank underwriting. Term structure estimation without using latent factors. Partial adjustment toward target capital structures
- Abstracts: Multi-equational linear quadratic adjustment cost models with rational expectations and cointegration. Stochastic taxation and asset pricing in dynamic general equilibrium