Fabrizi, Simona
[VerfasserIn]
;
Lippert, Steffen
[Sonstige Person, Familie und Körperschaft];
Norbäck, Pehr-Johan
[Sonstige Person, Familie und Körperschaft];
Persson, Lars
[Sonstige Person, Familie und Körperschaft]
Venture Capital Financing, Patenting, and Long-Run Performance of Private Acquisitions
Erschienen in:Massey U. College of Business Research Paper ; No. 13
Umfang:
1 Online-Ressource (46 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.1629226
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 15, 2010 erstellt
Beschreibung:
Our model reconciles seemingly contradictory empirical evidence on venture capital activity. Despite the venture capital-backed companies' superior long-run performance, stock markets react more negatively to their acquisitions than to other private acquisitions. Moreover, venture capital intensive industries show higher patent count, but not higher total factor productivity growth. We explain both contradictions through the venture capitalists' incentive to signal their companies' value prior to exiting. Such incentives increase their companies' investments, patenting, and performance; but inflate investment costs and acquisition prices. We generate novel testable predictions for the interaction of patent law, early-stage financing, and long-run performance of private acquisitions