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dc.contributor.authorGill, Andrejen_US
dc.contributor.authorWalz, Uween_US
dc.date.accessioned2012-02-14en_US
dc.date.accessioned2012-04-20T17:08:51Z-
dc.date.available2012-04-20T17:08:51Z-
dc.date.issued2012en_US
dc.identifier.piurn:nbn:de:hebis:30:3-240579-
dc.identifier.urihttp://hdl.handle.net/10419/57343-
dc.description.abstractWe investigate the decisions of listed firms to go private once again. We start by revealing that while a significant number of firms which go public is VC-backed, an overproportional share of these VC-backed firms go private later on (they stay on the exchange for an average of 8.5 years). We interpret this very robust pattern such that IPOs of VC-backed firms are to a large extent a temporary rather than a permanent feature of the corporate governance of these firms. We investigate various potential hypotheses why VCs actually seem to be able to bring marginal firms to the exchange by relating the going-private decisions to various characteristics of the IPO market as well as to VC characteristics. We find strong support for the certification ability of VCs: more experienced and reputable VCs are more able to bring marginal firms to public exchanges via an IPOs. These marginal firms backed-by more reputable and experienced VCs are more likely to go private later on. Hence, our analysis suggests that IPOs backed by experienced VCs are most likely to be a temporary rather than the final stage in the life of the portfolio firm. We find no support that reputable VCs underprice their IPO-exits more implying that they have no need to leave more money on the table to take the marginal firms public.en_US
dc.language.isoengen_US
dc.publisherCenter for Financial Studies Frankfurt, Mainen_US
dc.relation.ispartofseriesCFS Working Paper 2012/02en_US
dc.subject.jelG24en_US
dc.subject.jelG34en_US
dc.subject.jelD80en_US
dc.subject.ddc330en_US
dc.subject.keywordGoing-private decisionsen_US
dc.subject.keywordVC-backed IPOsen_US
dc.subject.keywordcorporate governanceen_US
dc.subject.stwWertpapieremissionen_US
dc.subject.stwGoing Privateen_US
dc.subject.stwUnternehmensentwicklungen_US
dc.subject.stwRisikokapitalen_US
dc.subject.stwSchätzungen_US
dc.subject.stwUSAen_US
dc.titleGoing public - going private: The case of VC-backed firmsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn685288048en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
dc.identifier.repecRePEc:zbw:cfswop:201202-
Appears in Collections:CFS Working Paper Series, Universität Frankfurt a. M.

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