Using a sample of venture capital-backed firms going public, we analyze the role played by perceived valuation changes on IPO underpricing. We consider the full trajectory of perceived valuation changes in a firm's value from its last VC round, to IPO filing, and ultimately to IPO price. We find...

Firms are often facing a dilemma - whether to develop several innovative projects in-house or finance them as independent entities (spin-offs). This paper provides additional insight which helps to resolve this dilemma. We show that for relatively independent projects, spinning them off...