How Important is Participation of Different VCs in German IPOs?
Journal
Global Finance Journal
Type
journal article
Date Issued
2007
Author(s)
Abstract
© 2006 Elsevier Inc. All rights reserved. This paper sets out to analyze the influence of different types of VCs on the performance of their portfolio firms around and after IPO in Germany. Our main finding is that market participants did not correctly assess the role played by the different types of VCs. Firms backed by independent, international and reputable VCs outperform other IPOs, and their share prices fluctuate less than those of their counterparts. Thus, independent, international and reputable VCs were able to add value by achieving a lower post-IPO idiosyncratic risk and a higher return. In contrast, firms backed by public VCs showed relative underperformance.
Language
English
HSG Classification
contribution to scientific community
HSG Profile Area
SOF - System-wide Risk in the Financial System
Refereed
Yes
Volume
17(3)
Start page
350
End page
378
Pages
28
Subject(s)
Division(s)
Eprints ID
259437