Are VC-backed IPOs delayed trade sales?

Andrej Gill and Uwe Walz ()

Journal of Corporate Finance, 2016, vol. 37, issue C, 356-374

Abstract: We investigate the role of venture-backing at the time of the initial public offering for the decision to subsequently be taken over and leave the exchange. We show, controlling for firm characteristics as well as the endogeneity of the involvement of VC, that VC-backed firms are significantly more likely to leave the exchange in the course of a take over. Our analysis sheds new light on decisions to go private, and even more so on the process of going public for VC-backed firms. Our findings suggest that, in a significant number of cases, VC-backed IPOs can be interpreted as delayed trade sales.

Keywords: Delisting; Takeovers; VC-backed IPOs; Corporate governance (search for similar items in EconPapers)
JEL-codes: G24 G30 G34 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:37:y:2016:i:c:p:356-374

DOI: 10.1016/j.jcorpfin.2016.01.007

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