The Valuation Effect of Listing Standards: An Analysis of Venture Capital-Backed IPOs

42 Pages Posted: 7 Aug 2009 Last revised: 12 Apr 2012

See all articles by Cécile Carpentier

Cécile Carpentier

Laval University; Center for Interuniversity Research and Analysis on Organization (CIRANO); University of Lille II - European Center for Corporate Control Studies

Douglas J. Cumming

Florida Atlantic University

Jean-Marc Suret

Laval University; Center for Interuniversity Research and Analysis on Organization (CIRANO); European Center for Corporate Control Studies

Date Written: March 8, 2010

Abstract

This paper examines the valuation of venture capital (VC)-backed IPOs in Canada and the US over the 1986-2007 period. The data indicate that differences in listing standards between Canada and the US account for fact that IPOs are valued substantially lower in Canada. We consider alternative matched samples based on factors that include size, sector and expected liquidity, and consider several alternative explanations that might affect IPO valuations, including the quality of the issuer, VC and investment bank, as well as mispricing, liquidity, and clientele effects.

Keywords: Securities regulation, Valuation, Initial Public Offerings, Venture capital, Listing Standards

JEL Classification: G24, G32, G14, G15

Suggested Citation

Carpentier, Cécile and Cumming, Douglas J. and Suret, Jean-Marc, The Valuation Effect of Listing Standards: An Analysis of Venture Capital-Backed IPOs (March 8, 2010). CIRANO - Scientific Publications 2010-01. Available at SSRN: https://ssrn.com/abstract=1443513 or http://dx.doi.org/10.2139/ssrn.1443513

Cécile Carpentier

Laval University ( email )

Pavilion Palasis Prince
Quebec, Quebec G1V 0A6
Canada

Center for Interuniversity Research and Analysis on Organization (CIRANO) ( email )

2020 rue University, 25th floor
Montreal, Quebec H3C 3J7
Canada

University of Lille II - European Center for Corporate Control Studies ( email )

2 rue de Mulhouse
BP381
Lille, 59800
France

Douglas J. Cumming

Florida Atlantic University ( email )

777 Glades Rd
Boca Raton, FL 33431
United States

HOME PAGE: http://booksite.elsevier.com/9780124095373/

Jean-Marc Suret (Contact Author)

Laval University ( email )

Accounting School
Quebec, P.Q. G1K 7P4
Canada
418-656-7134 (Phone)
418-656-7746 (Fax)

Center for Interuniversity Research and Analysis on Organization (CIRANO) ( email )

1130 rue Sherbrooke Ouest
Bureau 1400
Montreal, Quebec H3A 2M8
Canada

European Center for Corporate Control Studies ( email )

2 rue de Mulhouse
BP381
Lille, 59800
France

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