Post‐IPO Operating Performance, Venture Capital and the Bubble Years

Jerry Coakley, Leon Hadass and Andrew Wood ()

Journal of Business Finance & Accounting, 2007, vol. 34, issue 9‐10, 1423-1446

Abstract: Abstract: We analyse the post‐issue operating performance of 316 venture‐backed and 274 non‐venture UK IPOs 1985–2003. The finding of a statistically significant five‐year, operational decline exhibited over the full sample period is not robust. Rather it is driven by the dramatic underperformance during the 1998–2000 bubble years while IPOs perform normally in the remaining years. Cross‐section regression results indicate support for venture capital certification in the non‐bubble years but a significantly negative relationship between operating performance and venture capitalist board representation during the bubble years. The bubble year underperformance is explained by market timing and by low quality companies taking advantage of investor sentiment.

Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
https://doi.org/10.1111/j.1468-5957.2007.02055.x

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jbfnac:v:34:y:2007:i:9-10:p:1423-1446

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0306-686X

Access Statistics for this article

Journal of Business Finance & Accounting is currently edited by P. F. Pope, A. W. Stark and M. Walker

More articles in Journal of Business Finance & Accounting from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().