How much do VCS and underwriters matter? A comparative investigation of venture capitalist and underwriter effects on IPO underpricing

Title: How much do VCS and underwriters matter? A comparative investigation of venture capitalist and underwriter effects on IPO underpricing
Creator: Fitza, Markus; Dean, Thomas J.
Relation: Venture Capital Vol. 18, Issue 2, p. 95-114
Publisher Link: http://dx.doi.org/10.1080/13691066.2016.1123347
Publisher: Routledge
Resource Type: journal article
Date: 2016
Description: Research on initial public offerings (IPOs) suggests that underwriters as well as venture capitalists (VCs) affect IPO underpricing. However, the magnitude of the effect of VCs on underpricing remains unclear. Are VCs as important as underwriters? We conduct a variance decomposition analysis to compare these two influences. Our results indicate that VCs are of greater importance, and we suggest that VCs' superior evaluative capacity and signal legitimacy may be responsible for their effects.
Subject: information asymmetry; initial public offerings; underpricing; venture capital; underwriters
Identifier: http://hdl.handle.net/1959.13/1322001
Identifier: uon:24489
Identifier: ISSN:1369-1066
Language: eng
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