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Asymmetric information and the market structure of the venture capital industry

Hyytinen, Ari; Toivanen, Otto - 2001

In this paper we study a horizontally differentiated market for financial in-termediation and develop a simple explanation for concentration in the financial intermediation industry. We show that under asymmetric information, if the demand for funds is not perfectly elastic, the heterogeneity of...

Persistent link: https://www.econbiz.de/10010284895

The Decision of Venture Capitalists on Timing and Extent of IPOs

Tykvová, Tereza - 2003

We analyze the venture capitalist's decision on the timing of the IPO, the offer price and the fraction of shares he … sells in the course of the IPO. A venture capitalist may decide to take a company public or to liquidate it after one or two … financing periods. A longer venture capitalist's participation in a firm (later IPO) may increase its value while also …

Persistent link: https://www.econbiz.de/10010298130

Is the Behavior of German Venture Capitalists Different? Evidence from the Neuer Markt

Tykvová, Tereza - 2003

history of venture capital financing of these firms before the IPO and the behavior of venture capitalists at the IPO. We can … capitalists is lower, their selling intensity at the IPO is higher and the committed lock-up period is longer. …

Persistent link: https://www.econbiz.de/10010297295

Reducing Asymmetric Information in Venture Capital Backed IPOs

Escobari, Diego; Serrano, Alejandro - 2015

strong evidence that companies can be separated into two groups based on how IPO returns are determined. For companies in the … affiliation. We also motivate our findings for a continuum of heterogeneous IPO groups. Practical implications – The proposed … profitable investments. Separating between groups of IPOs is crucial because different determinants of an IPO operating …

Persistent link: https://www.econbiz.de/10011390741

Synergizing ventures

Akcigit, Ufuk; Dinlersoz, Emin Murat; Greenwood, Jeremy; … - 2019

Venture capital (VC) and growth are examined both empirically and theoretically. Empirically, VC-backed startups have higher early growth rates and initial patent quality than non-VC-backed ones. VC backing increases a startup's likelihood of reaching the right tails of the firm size and...

Persistent link: https://www.econbiz.de/10012389572

Which information should entrepreneurs on German crowdinvesting-platforms disclose?

Mäschle, Oliver - 2012

The disclosure requirements for firms issuing equity on German crowdinvestingplatforms are quite lax at the moment. This paper states that this loose requirement policy is not optimal in the presence of competition among platforms. First, a simple three-staged theoretical model is derived to...

Persistent link: https://www.econbiz.de/10010319286

Rationing and screening in crowdinvesting-markets

Mäschle, Oliver; Dalvai, Wilfried - 2016

The allocation of shares on crowd-investing-platforms is best described by the phrase "first come, first served". An entrepreneur who sells corporate equity to a "crowd" of investors on such a platform chooses a fixed investment target before the investment period begins. Once the aggregate...

Persistent link: https://www.econbiz.de/10011441479

The Impact of the Sarbanes-Oxley Act on the Cost of Going Public

Kaserer, Christoph; Mettler, Alfred; Obernberger, Stefan - In: BuR - Business Research 4 (2011) 2, pp. 125-147

This paper examines the impact of the Sarbanes-Oxley Act (SOX), a legal framework intended to increase transparency and accountability of listed companies, on the cost of going public in the US. We expect SOX to increase the direct cost of going public, but decrease the underpricing because of...

Persistent link: https://www.econbiz.de/10010421362

Informed trading, information asymmetry and pricing of information risk: Empirical evidence from the NYSE

Yadav, Pradeep K.; Bardong, Florian; Bartram, Söhnke M. - 2009

informed trading on firm characteristics that is largely consistent with intuition and earlier theory and empirical evidence …

Persistent link: https://www.econbiz.de/10010302554

Do prices in the unmediated call auction reflect insider information?: an experimental analysis

Brünner, Tobias; Levínský, René - 2008

The unmediated call auction is a useful trading mechanism to aggregate dispersed information. Its ability to incorporate information of a single informed insider, however, is less well understood. We analyse this question by presenting a simple call auction game where both auction prices and...

Persistent link: https://www.econbiz.de/10010275685