Size and diversity in VC syndicates and their impact on IPO performance

This paper investigates the impact of venture capital (VC) syndicate size and composition on the IPO and post-IPO performances of investee companies in an attempt to shed some light on the extent to which larger and more diverse syndicates are more likely to suffer from internal agency problems which might hinder the decision-making process and lead to less value added for their portfolio companies. The question is of great relevance because, while the vast majority of the empirical literature compares VC backed IPOs with non-VC backed ones, most VC funding is provided by syndicates of two or more financiers. We construct alternative measures of size as well as diversity based on several VC characteristics such as age, geographic location, type and affiliation of VC firms and find that larger and more diverse syndicates are associated with higher underpricing and lower valuation at the IPO date. Furthermore, we provide evidence that that diversity and size are negatively correlated to the long-term performance of the IPO firms and this finding is robust to several alternative measures of long-term performance.     

新三板市场IPO功能的发展前景分析

自2013年12月,新三板成立以来,得到了前所未有的发展。其中11家企业成功转板上市。本文就新三板挂牌企业转板IPO的优势进行了分析,并提出了问题和建议。     

私人股权基金（PE）对我国资本市场的影响

近年来，私人股权基金（Private Equit）在全球经济一体化蓬勃发展的背景下．已经成为国际金融市场上的“新锐”角色。中国作为亚洲新兴市场的代表——最有前途的私人股权投资市场．得到国际大投行的青睐。虽然私人股权投资在我国的发展有很大的机遇．但是由于法律和制度不健全等因素．私人股权基金在我国还面临许多挑战。私人股权基金要在我国健康发展．还急需解决基础研究、退出方式等问题。     

敢问路在何方——舒朗IPO失利背后的思索

近日,山东舒朗服装服饰股份有限公司首发申请未获通过,未能成为＂中国第一个上市的本土女装公司＂。资本的＂蓝海＂吸引了无数纺织企业的目光,在当前银根紧缩的大环境下,上市融资的意义有多大,纺织企业心知肚明。作为中国本土女装品牌的翘楚,舒朗上市的受阻引发行业内一片叹息与追问,舒朗叩击资本大门失利,背后的原因是什么？而民族女装品牌又将何去何从？     

Market Underreaction to Free Cash Flows from IPOs

I examine the relation between initial public offering (IPO) long‐run stock performance and the amount of cash raised by the firm in the offering. I find that IPOs raising more cash have poorer long‐run performance. The result is robust to different measurement methods. The evidence suggests that the market underreacts to free cash flow related agency problems in IPOs. Consistent with this interpretation, I find that IPO long‐run performance is more sensitive to the new cash raised in the offering if an IPO firm has lower capital expenditure or higher opening bid‐ask spread.     

Institutional investors and firm performance: Evidence from IPOs

We investigate the post-IPO evolution of institutional investor holdings and the manner in which operating performance is related to these holdings. During the first year after the IPO, average institutional holdings increase from 24% to 36% of shares outstanding and stabilize at about 42% by the end of the second year. We document that post-IPO operating performance is positively related to institutional holdings, but this relation subsides in the third year after the IPO. Overall, our findings indicate that institutional ownership is a valid indicator of the firm’s operating performance in its initial years as a public company.     

The role of internationalization on the IPO performance of service firms: Examination of initial returns,long-run returns,and survivability

This study examines the effect of internationalization on the initial and long-run IPO performance of service firms. The study discusses that pre-IPO internationalization of service firms contributes to the explanation of long-discussed IPO underpricing phenomenon, and underperformance of IPOs in the long-run. Sample of the study includes 1822 IPO issues conducted by US service firms between 1980 and 2009. Findings of the study suggest that international service firms leave less money on table in their IPOs compared to domestic service firms by providing significantly lower first day returns to their investors on their first day of public trading. Moreover, our findings provide evidence that 3-year cumulative abnormal returns and 3-year buy-and-hold returns of international service firms are significantly higher than domestic service firms, and international service firms outperform domestic service firms in both operating return on assets and operating cash flows in the post-IPO period. Lastly, the study documents that survival rate of service firms subsequent to an IPO issue increases with pre-IPO internationalization.