The Performance of Listed European Innovative Firms

in Beccalli E., Poli F. (ed), Lending, Investments and the Financial Crisis, Palgrave Macmillian, 2015

Posted: 15 Jan 2015 Last revised: 24 Nov 2015

See all articles by Luisa Anderloni

Luisa Anderloni

University of Milan - DEAS

Alessandra Tanda

University of Milan; Department of Economics

Date Written: 2015

Abstract

The paper examines the performance of European VC backed firms operating in the life science and ICT industries at IPO and in the long run. Empirical evidence shows a lower underpricing for VC backed companies and lower volatility of returns in the first days and first weeks of trading, suggesting the important role of venture capitalists in softening the asymmetries of information at IPO. The differences in performance of VC backed firms tend to disappear in the long run, as confirmed by the analysis performed considering various specification of return and risk, as well as employing a three factor market model approach.

Keywords: venture capital, IPO, VC backed, long run performance, risk adjusted performance measure, Europe

JEL Classification: G10, G24

Suggested Citation

Anderloni, Luisa and Tanda, Alessandra and Tanda, Alessandra, The Performance of Listed European Innovative Firms (2015). in Beccalli E., Poli F. (ed), Lending, Investments and the Financial Crisis, Palgrave Macmillian, 2015, Available at SSRN: https://ssrn.com/abstract=2547578

Luisa Anderloni

University of Milan - DEAS ( email )

Via Conservatorio, 7
Milan, 20122
Italy
+390250321546 (Phone)
+390250321505 (Fax)

Alessandra Tanda (Contact Author)

University of Milan ( email )

Via Festa del Perdono, 7
Milan, 20122
Italy

Department of Economics ( email )

Via Vivaldi 5
Genova, 16126
Italy

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