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Venture Capital Reputation, Post-IPO Performance and Corporate Governance

C. N. V. Krishnan
Case Western Reserve University - Department of Banking & Finance

Ronald W. Masulis
Vanderbilt University - Owen Graduate School of Management; Vanderbilt University - School of Law

Vladimir I. Ivanov
University of Kansas

Ajai K. Singh
Case Western Reserve University - Department of Banking & Finance


September 26, 2009

AFA 2008 New Orleans Meetings Paper

Abstract:     
We examine the association of a venture capital (VC) firm’s reputation with the post-IPO long-run performance of its portfolio firms. We find that VC reputation, as measured by the past market share of VC-backed IPOs, has significant positive associations with an array of long-run firm performance measures. While more reputable VCs initially select better quality firms, more reputable VCs continue to be associated with superior long-run performance even after controlling for VC selectivity. More reputable VCs exhibit more active post-IPO involvement in their portfolio firms, and continued VC involvement has a positive influence on post-IPO firm performance.

Keywords: Venture capital, Reputation, Initial Public Offerings, Post-IPO long-run performance, Post-IPO VC shareholdings and directorships, Corporate governance

JEL Classifications: G24

Working Paper Series

Date posted: June 22, 2006 ; Last revised: September 30, 2009

Suggested Citation

Krishnan, C. N. V., Masulis, Ronald W., Ivanov, Vladimir I. and Singh, Ajai K., Venture Capital Reputation, Post-IPO Performance and Corporate Governance (September 26, 2009). AFA 2008 New Orleans Meetings Paper. Available at SSRN: http://ssrn.com/abstract=910982


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Contact Information

Ronald W. Masulis (Contact Author)
Vanderbilt University - Owen Graduate School of Management ( email )
401 21st Avenue South
Nashville, TN 37203
United States
615-322-3687 (Phone)
615-343-7177 (Fax)
Vanderbilt University - School of Law
131 21st Avenue South
Nashville, TN 37203-1181
United States
Vladimir Ivanov
University of Kansas ( email )
1300 Sunnyside Ave
Lawrence, KS 66045
United States
C.N.V. Krishnan
Case Western Reserve University - Department of Banking & Finance ( email )
10900 Euclid Ave.
PBL 363
Cleveland, OH 44106-7235
United States
216-368-2116 (Phone)
HOME PAGE: http://www.weatherhead.cwru.edu/wsom/profiles/krishnan.html
Ajai K. Singh
Case Western Reserve University - Department of Banking & Finance ( email )
10900 Euclid Ave.
Cleveland, OH 44106-7235
United States
216-368-0802 (Phone)
216-368-6249 (Fax)
Feedback to SSRN (Beta)


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