EXPLAINING THE VARIANCE IN UNDERPRICING AMONG VENTURE CAPITAL-BACKED IPOs: A COMPARISON BETWEEN PRIVATE AND CORPORATE VC FIRMS

摘要

In this study, we argue from the resource-based view and multiple agency theory that private and corporate VC firms have different impacts on IPO underpricing among VC-backed IPOs due to their different interests, motivations, and resources. Private VC firms are primarily financial oriented, but corporate VC firms generally are strategic in orientation. Using a sample of 200 VC-backed IPOs from 2000 to 2007, we found support for the hypotheses that among VC-backed IPOs, private VC ownership is positively associated with underpricing, whereas corporate VC ownership is negatively associated with underpricing.