Venture capital‐backed and commitments test entity initial public offerings on the ASX
| Autor: | Madhu Veeraraghavan, Zoltan Murgulov, Alastair Marsden, S. Ghon Rhee |
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| Rok vydání: | 2017 |
| Předmět: |
040101 forestry
050208 finance business.industry 05 social sciences Economics Econometrics and Finance (miscellaneous) Accounting 04 agricultural and veterinary sciences Monetary economics Venture capital Test (assessment) 0502 economics and business 0401 agriculture forestry and fisheries Business Empirical evidence Initial public offering Finance |
| Zdroj: | Accounting & Finance. 59:1265-1297 |
| ISSN: | 1467-629X 0810-5391 |
| Popis: | This paper examines initial returns to venture capital (VC) backed and non‐VC‐backed IPO companies on the Australian Securities Exchange (ASX). We find support for the theoretical predictions of Rossetto (2008), by providing empirical evidence that VC‐backed CTE IPOs exhibit greater wealth losses to pre‐IPO investors compared to non‐VC‐backed CTE IPOs during hot issue markets. We also find that greater retained ownership increases IPO underpricing. In the subsample of IPOs with below the median level of retained ownership IPOs, VC‐backed CTE IPOs and VC‐backed, non‐CTE IPOs have significantly higher levels of underpricing and wealth loss compared to non‐VC‐backed, non‐CTE IPOs. |
| Databáze: | OpenAIRE |
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