Song, Kyojik “Roy”; Kim, Inho; Chang, Young K. - In: Pacific-Basin Finance Journal 29 (2014) C, pp. 182-198
that VC-backed reverse takeover firms have higher leverage, lower profitability, and higher information asymmetry than VC …-backed IPO firms. The results suggest that venture capital uses a reverse takeover as an alternative exit method from their … portfolio firms since reverse takeovers constitute a fast and low-cost going-public mechanism. We then find that reverse …