Amini, S orcid.org/0000-0003-2719-8267, Mohamed, A orcid.org/0000-0002-2974-9467, Schwienbacher, A et al. (1 more author) (2022) Impact of venture capital holding on firm life cycle: Evidence from IPO firms. Journal of Corporate Finance, 74. 102224. ISSN 0929-1199
Abstract
This paper examines the impact of VC ownership beyond the IPO listing on important and consequential corporate decisions in a firm's lifetime. We find that VC funds delay the initiation of dividends by approximately two years, delay the use of external growth strategies, and postpone introduction to the corporate bond market. These results are consistent with the view that VC funds extend the growth phase of the firm. We show that their presence at the time of these decisions leads to positive stock price reactions, suggesting that they provide a certification effect that signals continued growth opportunities, and that VC certification is not limited to the IPO listing.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2022 Elsevier B.V. All rights reserved. This is an author produced version of an article published in Journal of Corporate Finance. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Venture capital; Corporate ownership; IPO; Corporate governance |
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: | 26 May 2022 10:52 |
Last Modified: | 29 Nov 2023 01:13 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.jcorpfin.2022.102224 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:187228 |