The rise of venture capital and IPO quality

IF 2.1 2区经济学 Q2 BUSINESS, FINANCE

Journal of Empirical Finance Pub Date : 2025-04-02 DOI:10.1016/j.jempfin.2025.101613

Amrita Nain , Jie Ying , Joseph Arthur

引用次数: 0

Abstract

We show that an increase in the supply of venture capital (VC) leads to a decline in the quality of firms going public. We argue that due to VC selectivity, private capital flows disproportionately to the most promising firms causing them to hold back from public issuance. Post-IPO abnormal returns indicate that the stock market does not fully incorporate this decline in quality at the time of the IPO. Our research adds to recent evidence on the negative impact of fast-growing private markets on Main Street investors.

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风险投资的兴起与IPO质量

研究表明，风险资本供给的增加导致上市公司质量的下降。我们认为，由于风险投资的选择性，私人资本不成比例地流向最有前途的公司，导致它们不愿公开发行。IPO后的异常回报表明，在IPO时，股票市场并没有完全消化这种质量下降。我们的研究进一步证明了快速增长的私人市场对普通投资者的负面影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Empirical Finance Multiple-

CiteScore

3.40

自引率

3.80%

发文量

期刊介绍： The Journal of Empirical Finance is a financial economics journal whose aim is to publish high quality articles in empirical finance. Empirical finance is interpreted broadly to include any type of empirical work in financial economics, financial econometrics, and also theoretical work with clear empirical implications, even when there is no empirical analysis. The Journal welcomes articles in all fields of finance, such as asset pricing, corporate finance, financial econometrics, banking, international finance, microstructure, behavioural finance, etc. The Editorial Team is willing to take risks on innovative research, controversial papers, and unusual approaches. We are also particularly interested in work produced by young scholars. The composition of the editorial board reflects such goals.