Hasan, I, Khurshed, A, Mohamed, A orcid.org/0000-0002-2974-9467 et al. (1 more author) (2018) Do venture capital firms benefit from a presence on boards of directors of mature public companies? Journal of Corporate Finance, 49. C. pp. 125-140. ISSN 0929-1199
Abstract
This paper examines the benefits to venture capital firms of their officers holding directorships in mature public companies in terms of fundraising and investment performance. Our empirical results show that venture capital firms raise more funds, set higher fund-raising targets, and are more likely to successfully exit their investments post-appointment of their officers to boards of directors of S&P 1500 companies. Directorship status in mature public firms provides venture capital firms with enhanced networks, visibility, and credibility, all of which facilitate their fundraising activities. In addition, the knowledge, expertise, and experience acquired through holding directorships in mature public firms are beneficial for their portfolio companies, as measured by the likelihood of successful exits.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2018 Elsevier B.V. All rights reserved. This is an author produced version of a paper published in Journal of Corporate Finance. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Venture capital; Board; Directorships; Public companies; Exits |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 06 Dec 2019 12:33 |
Last Modified: | 06 Dec 2019 12:33 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.jcorpfin.2017.04.018 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:154224 |
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