EconPapers    
Economics at your fingertips  
 

Venture Capital Investments and Merger and Acquisition Activity Around the World

Gordon Phillips () and Alexei Zhdanov

No 24082, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We examine the relation between venture capital (VC) investments and mergers and acquisitions (M&A) activity around the world. We find evidence of a strong positive association between VC investments and lagged M&A activity, consistent with the hypothesis that an active M&A market provides viable exit opportunities for VC companies and therefore incentivizes them to engage in more deals. We also explore the effects of country-level pro-takeover legislation passed internationally (positive shocks), and US state-level antitakeover business combination laws (negative shocks), on VC activity. We find significant post-law changes in VC activity. VC activity intensifies after enactment of country-level takeover friendly legislation and decreases following passage of state antitakeover laws in the U.S.

JEL-codes: G3 G34 L12 O3 O31 O34 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cfn and nep-ent
Date: 2017-11
Note: CF IO PR
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.nber.org/papers/w24082.pdf (application/pdf)

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:nbr:nberwo:24082

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w24082

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2019-05-02
Handle: RePEc:nbr:nberwo:24082