The Role of Venture Capital (VC) in the Underpricing of European Life Science Companies

• Autorzy: Alessandra Tanda , Luisa Anderloni
• Języki publikacji: EN

Abstrakty

EN

This study evaluates the underpricing of the European companies operating in the life science industries at IPO. Results show a positive and high underpricing for the IPOs occurred between 2002 and 2007. Moreover, when differentiating between VC backed and non VC backed firms, we find that the first exhibit a lower underpricing both for the first day of trading and the first week after the IPO, and evidence support the idea of a positive contribution of venture capitalists to the performance of the listing firms. Moreover, VC backed firms appear less risky, registering a lower volatility of returns in the days following the IPO date. (original abstract)

Słowa kluczowe

EN

Venture capital; Venture capital funds; Initial Public Offering (IPO); Underpricing

PL

Venture capital; Fundusze venture capital; Pierwsza oferta publiczna; Niedoszacowanie cen akcji

• Czasopismo: Journal of Economics & Management / University of Economics in Katowice
• Rocznik: 2014
• Numer: nr 18
• Strony: 243--256

Twórcy

autor

Alessandra Tanda

• Università degli Studi di Milano, Italy

autor

Luisa Anderloni

• Università degli Studi di Milano, Italy

Bibliografia

• Brau J., Brown R.A., Osteryoung J.S. (2004): Do Venture Capitalists Add Value to Small Manufacturing Firms? An Empirical Analysis of Venture and Nonventure Capital-Backed Initial Public Offerings. "Journal of Small Business Management", Vol. 42 (1), pp. 78-92.
• Chemmanur T.J., Loutskina E. (2006): The Role of Venture Capital Backing in Initial Public Offerings: Certification, Screening, or Market Power? "EFA 2005 Moscow Meetings Paper".
• Coackley J., Hadass L., Wood A. (2004): Post-IPO Operating Performance, Venture Capitalists and Market Timing. "Journal of Business Finance and Accounting", Vol. 34 (9-10), pp. 1423-1446.
• Coackley J., Hadass L., Wood A. (2009): UK IPO Underpricing and Venture Capitalists. "European Journal of Finance", Vol. 15 (4), pp. 421-435.
• Dobloug T.A. (2008): Venture Capital and Innovation. "Elverum: Høgskolen i Hedmark", Notat; nr. 6-2008.
• EVCA (2013): 2013 European Private Equity Activity. http://www.evca.eu.
• Gompers P. (1996): Grandstanding in the Venture Capital Industry. "Journal of Financial Economics", Vol. 42, pp. 133-156.
• Ibbotson R., Ritter J.R. (1995): Initial Public Offerings (Chapter 30). In: Handbook in OR & MS. Vol. 9, Ed. by. R. Jarrow et al. pp. 993-1016,
• Jain B., Kini O., (2000): Does the Presence of Venture Capitalists Improve the Survival Profile of IPO Firms? "The Journal of Business Finance and Accounting", Vol. 27 (9-10), pp. 1139-1183.
• Kaplan S., Stromberg P. (2001): Venture Capitalists as Principals: Contracting, Screening and Monitoring. "American Economic Reviews Papers and Proceedings".
• Kortum S., Lerner J. (2000): Assessing the Contribution of Venture Capital to Innovation. "Journal of Economics", Vol. 31 (4), pp. 674-692.
• Lee P.M., Wahal S. (2002): Grandstanding, Certification and the Underpricing of Venture Capital Backed IPOs. "Journal of Financial Economics", Vol. 73 (2), pp. 375-407.
• Lerner J. (2003): Boom and Bust in the Venture Capital Industry and the Impact of Innovation. "Harvard NOM Research Paper", No. 03-13.
• Megginson W., Weiss K. (1991): Venture Capitalist Certification in IPOs. "Journal of Finance", Vol. 46, pp. 879-903.
• Silva Rosa R. da, Velayuthen G., Walter T. (2003): The Sharemarket Performance of Australian Venture Capital-backed and Non-Venture Capital-Backed IPOs. "Pacific- Basin Finance Journal", Vol. 11, pp. 197-218.