Journal of Corporate Finance Vol. 37 2016
Are VC-backed IPOs delayed trade sales?
Abstract
We investigate the role of venture-backing at the time of the initial public offering for the decision to subsequently be taken over and leave the exchange. We show, controlling for firm characteristics as well as the endogeneity of the involvement of VC, that VC-backed firms are significantly more likely to leave the exchange in the course of a take over. Our analysis sheds new light on decisions to go private, and even more so on the process of going public for VC-backed firms. Our findings suggest that, in a significant number of cases, VC-backed IPOs can be interpreted as delayed trade sales.
- DOI
- 10.1016/j.jcorpfin.2016.01.007
- Volume
- 37
- Pages
- 356-374
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref