Grandstanding in the UK Venture Capital Industry

Barnes, Edel; McCarthy, Yvonne

doi:10.2139/ssrn.313935

Cited by 8 publications

(10 citation statements)

References 15 publications

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“…In doing so, the findings are comparable to the time period covered in recent studies (e.g., Espenlaub et al, 1999;Espenlaub et al, 2001;Khurshed and Mudambi, 2002;Barnes et al, 2003). IPOs have been identified from the London Stock Exchange Quarterly with Quality of Markets Review (1992Review ( -1995 and Quality of Markets Monthly Fact Sheet (1995)(1996).…”

Section: Samplesupporting

confidence: 78%

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Firm resources and quality signalling: evidence from UK initial public offerings

Reber

Berry

Toms

2005

Applied Financial Economics

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This study examines the relative importance of financial structure, advisers' reputations, and managerial experience on the market value achieved by an initial public offering (IPO). A sample of 172 UK IPOs on the Official list of the London Stock Exchange during the period 1992-1996 indicates that the extent to which existing owners keep a stake in the business, and managerial expertise at board level, have a significant impact on the performance of the IPO. Advisers' reputations appear to be irrelevant. The findings are comparable to recent studies that cover a similar sample period.

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Section: Samplesupporting

confidence: 78%

“…In doing so, the study also adds to the literature by analysing a sample of UK firms that is comparable to the time period covered in Espenlaub et al (1999Espenlaub et al ( , 2001, Khurshed and Mudambi (2002), and Barnes et al (2003).…”

Section: Introductionmentioning

confidence: 99%

Firm resources and quality signalling: evidence from UK initial public offerings

Reber

Berry

Toms

2005

Applied Financial Economics

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“…In addition, in the sample by Gompers (1996), the shares of firms backed by young venture capital companies are more underpriced at their initial public offerings than the shares of firms backed by more established venture capital companies. By contrast, in the sample used by Barnes and McCarthy (2002), the firms backed by young private equity companies do not differ with respect to underpricing from their counterparts backed by more established private equity companies.…”

Section: Hypotheses On Certification and Grandstandingmentioning

confidence: 79%

“…According to their study, most private equity funds are legally constituted as a limited partnership with a pre-determined, finite lifetime (closed-end form). 6 Limited partnerships are very popular as an organizational form for venture capital and private equity companies in the United Kingdom and the United States (Lerner 1995, Barnes andMcCarthy 2002). In a limited partnership, the general partners (the venture capital companies) are independent of their limited partners (their capital providers).…”

Section: Design Of Contractsmentioning

confidence: 99%

“…Barnes and McCarthy (2002) who have used a sample of 85 initial public offerings in the United Kingdom have found evidence that firms backed by young private equity companies are younger at the initial public offering than those backed by older and thus more established private equity companies. While young US venture capital companies raise new funds significantly earlier after the date of the initial public offering than their established counterparts (Gompers 1996), young British private equity companies do not differ from their established counterparts in this respect.…”

Section: Hypotheses On Certification and Grandstandingmentioning

confidence: 99%

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The Venture Capital Industry in Europe

Schertler¹

2006

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Speed of Venture Financing for Emerging Technology‐Based Entrepreneurial Firms as a Function of Founder Reputation

Mahto¹,

Khanin²

2013

Creat Innov Manage

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One of the major commercialization hurdles for technology-based entrepreneurial enterprises is financing and the speed of its acquisition. This is compounded in the case of emerging technology-based enterprises by the nature of their technology acquisition and founding team structure. Many of these firms do not have founders with extensive reputations in the financial community. If founder reputation is important to funding sources with regard to speed and access, and emerging technology commercial development is important for solving twentyfirst-century problems and generating economic growth, then there is cause for concern. Here we build on prior research and data from 140 Internet-based firms to examine the effect that founder reputation has on the ability of an enterprise to swiftly obtain financing. Our results suggest that founder reputation expedites ventures' quick access to public but not to private financing. In addition, our results demonstrate that venture capital financing obtained early on and financing by large venture capital syndicates delay access to public financing for founders with extensive reputations.

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Grandstanding in the UK Venture Capital Industry

Cited by 8 publications

References 15 publications

Firm resources and quality signalling: evidence from UK initial public offerings

Firm resources and quality signalling: evidence from UK initial public offerings

The Venture Capital Industry in Europe

Speed of Venture Financing for Emerging Technology‐Based Entrepreneurial Firms as a Function of Founder Reputation

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