How Important is Participation of Different VCs in German IPOs?

Item Type Journal paper
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.

Authors Tykvova, Tereza & Walz, U.
Journal or Publication Title Global Finance Journal
Language English
Subjects business studies
economics
finance
HSG Classification contribution to scientific community
HSG Profile Area SOF - System-wide Risk in the Financial System
Refereed Yes
Date 2007
Volume 17(3)
Page Range 350-378
Number of Pages 28
Publisher DOI 10.1016/j.gfj.2006.05.008
Depositing User Diky Seematter-Yardong
Date Deposited 25 Feb 2020 11:08
Last Modified 03 Mar 2020 14:04
URI: https://www.alexandria.unisg.ch/publications/259437

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Citation

Tykvova, Tereza & Walz, U. (2007) How Important is Participation of Different VCs in German IPOs? Global Finance Journal, 17(3) 350-378.

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https://www.alexandria.unisg.ch/id/eprint/259437
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