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Why are the French so Different from the Germans? Underpricing of IPOs on the Euro New Markets

Renneboog, Luc; Goergen, M.; Khurshed, A. - Tilburg University, Center for Economic Research - 2006

IPOs on the EuroNMs have shown very high underpricing.The majority of these IPOs possess specific characteristics such as lock-up agreements, venture-capital financing, ownership by the underwriter and over-allotment options.We study how these characteristics influence the underpricing of firms...

Persistent link: https://www.econbiz.de/10011092834

What is the Role of Legal Systems in Financial Intermediation? Theory and Evidence

Da Rin, Marco; Bottazzi, L.; Hellmann, T. - Tilburg University, Center for Economic Research - 2008

We develop a theory and empirical test of how the legal system affects the relationship between venture capitalists and entrepreneurs. The theory uses a double moral hazard framework to show how optimal contracts and investor actions depend on the quality of the legal system. The empirical...

Persistent link: https://www.econbiz.de/10011090634

The Importance of Trust for Investment : Evidence From Venture Capital (Revision of DP 2009-43)

Da Rin, Marco; Bottazzi, L.; Hellmann, T. - Tilburg University, Center for Economic Research - 2010

We examine the effect of trust on financial investment and contracting decisions in a micro-economic environment where … among nations significantly affects investment decisions. This holds even after controlling for investor and company fixed …

Persistent link: https://www.econbiz.de/10011090711

The Financing of Innovation : Learning and Stopping

Bergemann, D.; Hege, U. - Tilburg University, Center for Economic Research - 2001

This paper considers the financing of a research project under uncertainty about the time of completion and the probability of eventual success.The uncertainty about future success gradually diminishes with the arrival of additional funding.The entrepreneur controls the funds and can divert...

Persistent link: https://www.econbiz.de/10011090781

Lock-In Agreements in Venture Capital Backed UK IPOs

Renneboog, Luc; Espenlaub, S.; Goergen, M.; Khurshed, A. - Tilburg University, Center for Economic Research - 2002

This paper examines the impact of venture-capital backing of UK companies issuing shares at flotation on the characteristics of the lock-in agreements entered into by the existing shareholders, and on the abnormal returns realised around the expiry of the directors' lock-in agreements.The study...

Persistent link: https://www.econbiz.de/10011090926

Diversification in Private Equity Funds : On Knowledge-sharing, Risk-aversion and Limited-attention

Humphery-Jenner, M. - Tilburg University, Center for Economic Research - 2011

This paper examines diversification as a source of value creation and destruction in private equity. The literature has focused on the `diversification discount' in corporations. It has not analyzed diversification in PE-funds, where diversification might increase value by ameliorating...

Persistent link: https://www.econbiz.de/10011091238

A Survey of Venture Capital Research

Da Rin, Marco; Hellmann, T.; Puri, M.L. - Tilburg University, Center for Economic Research - 2011

examines the work on venture capital investments in companies, looking at issues of selection, contracting, post-investment …

Persistent link: https://www.econbiz.de/10011091468

Shareholder Lock-In Contracts : Share Price and Trading Volume Effects at the Lock-In Expiry

Renneboog, Luc; Angenandt, P.P.; Goergen, M. - Tilburg University, Center for Economic Research - 2005

This paper unveils the diversity in lock-in agreements of firms listed on the Nouveau Marche stock exchange in France.We give the main economic reasons why shareholders adopt lock-in agreements that are more stringent than legally required.We relate the abnormal returns and the abnormal volume...

Persistent link: https://www.econbiz.de/10011092015

Finite Project Life and Uncertainty Effects on Investment

Huisman, Kuno; Kort, Peter; Gryglewicz, S. - Tilburg University, Center for Economic Research - 2006

This paper revisits the important result of the real options approach to investment under uncertainty, which states … that increased uncertainty raises the value of waiting and thus decelerates investment.Typically in this literature … that investment projects are usually considered to have a .nite life.The present paper studies investment projects with …

Persistent link: https://www.econbiz.de/10011092584

Effects of Strategic Interactions on the Option Value of Waiting

Huisman, Kuno; Kort, Peter - Tilburg University, Center for Economic Research - 1999

This paper considers an investment timing problem in a duopoly framework. The results of the seminal contribution by … scenario we have a preemption equilibrium with dispersed investment timing, while in the second scenario an equilibrium with … joint investment prevails. In the third scenario preemption holds in case uncertainty is low, and joint investment is the …

Persistent link: https://www.econbiz.de/10011092843