Venture capital firm reputation, portfolio company long-run performance, hot IPO markets, and different countries - evidence from continental Europe’s market for initial public offerings
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School of Business |
Bachelor's thesis
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Date
2020
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Rahoitus
Language
en
Pages
27 + 2
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Abstract
Using a sample of 442 initial public offerings, I study the relation of venture capital firm reputation and portfolio company long-run post- initial public offering performance in continental Europe between 2004 and 2016. Inconsistent with Krishnan et al. (2011), I find venture capital reputation, based on past IPO activity of venture capitalists, to have a significant negative relation on issuer long-run performance in Europe. My findings also indicate that venture capital reputation only affects portfolio companies long-run returns negatively in normal markets and is insignificant during hot IPO markets. Also, reputable venture capitalists’ portfolio firm long-run performance is not consistent between my sample countries, but rather reputable venture capitalists’ portfolio companies outperform their constituents in countries with small venture capital markets.Description
Thesis advisor
Shin, SeanKeywords
venture capital, VC reputation, portfolio company, IPO