Venture Capitalist Certification of IPOs
Document Type
Article
Publication Date
2005
Publication Title
Venture Capital
First Page
131
Last Page
148
DOI
http://dx.doi.org/10.1080/1369106042000335601
Abstract
This article analyses a set of 4606 IPOs from the 1986 to 2000 period, specifically focusing on the certification effect associated with venture capital backing. It concludes that venture capitalists, particularly those of higher quality, are associated with lower issuance costs (both direct and indirect), increased upward price adjustments, and shorter lockup periods, all of which are consistent with a valuable certification role. In addition, it is found that even lower quality venture capitalists perform a certification role; however, it is specific to a set of penny stock (i.e. high information asymmetry) IPOs.
Rights
Version of record can be found through Taylor and Francis.
Recommended Citation
Dolvin, Steven D., "Venture Capitalist Certification of IPOs" (2005). Scholarship and Professional Work - Business. 128.
https://digitalcommons.butler.edu/cob_papers/128