How useful is venture capital prestige? Evidence from IPO survivability

Ting Kai Chou, Jia Chi Cheng, Chin Chen Chien

研究成果: Article同行評審

21 引文 斯高帕斯(Scopus)

摘要

This study examines the effect of venture capitalist (VC) prestige on the post-issue survivability of IPOs and how VC characteristics influence the effect. We find that IPOs backed by prestigious VCs are less likely to delist for performance failure and have longer listing duration relative to those without VC backing; however, IPOs backed by ordinary VCs are as likely to delist as IPOs without VC backing. The finding is robust for Internet and high-tech firms. We further examine heterogeneous VC characteristics and find that the ability of prestigious VCs to improve IPO survival is a function of their investment experience and managerial ability. VC prestige characterized by industry specialization and syndication networks is not related to IPO survival. Overall, the results suggest that the VC characteristics that produce prestige, rather than the prestige itself, drive the long-term survival of IPOs.

原文English
頁(從 - 到)843-863
頁數21
期刊Small Business Economics
40
發行號4
DOIs
出版狀態Published - 2013 五月

All Science Journal Classification (ASJC) codes

  • Business, Management and Accounting(all)
  • Economics and Econometrics

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