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Gompers Xuan (2006) - The Role Of Venture Capitalists In The Acquisition Of Private Companies (view source)
Revision as of 16:44, 20 July 2012
, 16:44, 20 July 2012New page: This page is referenced under: *VC Acquisitions Paper *VC Acquisitions Lit Review ==Reference== Gompers, P. and Xuan, Y. (2006), "The role of venture capitalists in the acquisiti...
This page is referenced under:
*[[VC Acquisitions Paper]]
*[[VC Acquisitions Lit Review]]
==Reference==
Gompers, P. and Xuan, Y. (2006), "The role of venture capitalists in the acquisition of private companies", Unpublished working paper, Harvard University ([[Media:Gompers Xuan (2006) - The Role Of Venture Capitalists In The Acquisition Of Private Companies.pdf|pdf]])
@article{gompers2006role,
title={The role of venture capitalists in the acquisition of private companies},
author={Gompers, P. and Xuan, Y.},
journal={Unpublished working paper. Harvard University},
year={2006},
abstract={In this paper, we examine the characteristics of acquisition of private firms by public companies and explore the impact that venture capital-backing has on the acquirer's characteristics, form of payment, announcement returns, as well as long-run stock price and operating performance. We find that compared to the acquirers of other private companies, those firms that acquire private venture capital-backed companies tend to be larger, have higher Tobin's Q, and are more likely to use equity in the transaction and buy companies in a related industry. The market tends to react more negative to announcement of the acquisition of a venture capital-backed company, but the long-run stock market and operating performance is superior than other private acquisitions. We find that the use of stock and related transaction predicts better long-run performance. Our results suggest that the acquirers of private venture capital-backed companies do not suffer any adverse selection problem and continue to have superior performance in the long-run. },
filename={Gompers Xuan (2006) - The Role Of Venture Capitalists In The Acquisition Of Private Companies.pdf}
}
==Abstract==
In this paper, we examine the characteristics of acquisition of private firms by public companies and explore the impact that venture capital-backing has on the acquirer's characteristics, form of payment, announcement returns, as well as long-run stock price and operating performance. We find that compared to the acquirers of other private companies, those firms that acquire private venture capital-backed companies tend to be larger, have higher Tobin's Q, and are more likely to use equity in the transaction and buy companies in a related industry. The market tends to react more negative to announcement of the acquisition of a venture capital-backed company, but the long-run stock market and operating performance is superior than other private acquisitions. We find that the use of stock and related transaction predicts better long-run performance. Our results suggest that the acquirers of private venture capital-backed companies do not suffer any adverse selection problem and continue to have superior performance in the long-run.
*[[VC Acquisitions Paper]]
*[[VC Acquisitions Lit Review]]
==Reference==
Gompers, P. and Xuan, Y. (2006), "The role of venture capitalists in the acquisition of private companies", Unpublished working paper, Harvard University ([[Media:Gompers Xuan (2006) - The Role Of Venture Capitalists In The Acquisition Of Private Companies.pdf|pdf]])
@article{gompers2006role,
title={The role of venture capitalists in the acquisition of private companies},
author={Gompers, P. and Xuan, Y.},
journal={Unpublished working paper. Harvard University},
year={2006},
abstract={In this paper, we examine the characteristics of acquisition of private firms by public companies and explore the impact that venture capital-backing has on the acquirer's characteristics, form of payment, announcement returns, as well as long-run stock price and operating performance. We find that compared to the acquirers of other private companies, those firms that acquire private venture capital-backed companies tend to be larger, have higher Tobin's Q, and are more likely to use equity in the transaction and buy companies in a related industry. The market tends to react more negative to announcement of the acquisition of a venture capital-backed company, but the long-run stock market and operating performance is superior than other private acquisitions. We find that the use of stock and related transaction predicts better long-run performance. Our results suggest that the acquirers of private venture capital-backed companies do not suffer any adverse selection problem and continue to have superior performance in the long-run. },
filename={Gompers Xuan (2006) - The Role Of Venture Capitalists In The Acquisition Of Private Companies.pdf}
}
==Abstract==
In this paper, we examine the characteristics of acquisition of private firms by public companies and explore the impact that venture capital-backing has on the acquirer's characteristics, form of payment, announcement returns, as well as long-run stock price and operating performance. We find that compared to the acquirers of other private companies, those firms that acquire private venture capital-backed companies tend to be larger, have higher Tobin's Q, and are more likely to use equity in the transaction and buy companies in a related industry. The market tends to react more negative to announcement of the acquisition of a venture capital-backed company, but the long-run stock market and operating performance is superior than other private acquisitions. We find that the use of stock and related transaction predicts better long-run performance. Our results suggest that the acquirers of private venture capital-backed companies do not suffer any adverse selection problem and continue to have superior performance in the long-run.
