Explaining the variance in underpricing among venture capital-backed ipos : A comparison between private and corporate VC firms

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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Detail(s)

Original languageEnglish
Pages (from-to)331-342
Journal / PublicationStrategic Entrepreneurship Journal
Volume7
Issue number4
Online published24 Oct 2013
Publication statusPublished - Dec 2013

Abstract

In this study, we argue from the resource-based view and multiple agency theory that private and corporate VC firms have different impacts on IPO underpricing among VC-backed IPOs due to their different interests, motivations, and resources. Private VC firms are primarily financial oriented, but corporate VC firms generally are strategic in orientation. Using a sample of 200 VC-backed IPOs from 2000 to 2007, we found support for the hypotheses that among VC-backed IPOs, private VC ownership is positively associated with underpricing, whereas corporate VC ownership is negatively associated with underpricing. Copyright © 2013 Strategic Management Society. © 2013 Strategic Management Society.

Research Area(s)

  • Corporate VC, Entrepreneurial ventures, IPO underpricing, Private VC, Venture capital firms