|
|
|
|
||||
|
||||
Can VCs Time the Market? An Analysis of Exit Choice for Venture-Backed FirmsEric R. BallOracle Corporation; Claremont Graduate University Drucker-Ito School of Management Hsin-Hui ChiuCalifornia State University, Northridge Richard L. SmithUniversity of California, Riverside - Anderson Graduate School of Management April 4, 2011 Abstract: We use a sample of 8163 venture-backed companies over three decades to test the competing hypotheses that levels and relative shares of IPO and M&A exits are affected by market timing, versus pseudo market timing that reflects market conditions. We find evidence of pseudo market timing. VC-backed issuers react to market or sector run-ups but do not predict downturns. We find no evidence that firm-specific market timing contributes to IPO or M&A waves. We also find that acquirers turn to acquisition when other opportunities are unattractive, and that the market may be slow to recognize that such opportunities are declining.
Number of Pages in PDF File: 44 Keywords: IPO, acquisition, market timing, pseudo market timing, venture capital JEL Classification: G14, G24, G32, G34 working papers seriesDate posted: February 8, 2009 ; Last revised: April 12, 2011Suggested CitationContact Information
|
|
||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo7 in 0.625 seconds
