The impact of venture capital backing on the corporate governance of Australian initial public offerings

Suchard, Jo‐Ann

doi:10.1016/j.jbankfin.2008.10.018

Cited by 74 publications

(61 citation statements)

References 47 publications

(79 reference statements)

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“…First, we use a new hand-collected database, which covers approximately 85% of the Italian buyout funds. Second, we extend the results of Suchard (2009) by showing how a change in regulation may enhance a PE fund's involvement in improving the governance of the target firm. Third, we emphasize the importance of the legal environment for the PE activity, by extending the works of La Porta et al (1997Porta et al ( , 1998 and Lerner and Schoar (2005).…”

Section: Introductionmentioning

confidence: 56%

Illegal buyouts

Cumming

Zambelli

2010

Journal of Banking & Finance

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a b s t r a c tThis study empirically examines the effects of a regulation change on the structure and governance of leveraged buyouts (LBOs) within the Italian private equity market, whose transactions were only recently legalized. With a new data set covering approximately 85% of the buyout funds active in Italy during the period of 1999-2006, we find that a regulation that prohibits LBOs can reduce their frequency, but does not exclude them altogether. Rather, it inhibits efficient governance and distorts decision making. Overall, the data are consistent with the view that laws prohibiting LBOs result in less efficient LBO arrangements.

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Section: Introductionmentioning

confidence: 56%

Illegal buyouts

Cumming

Zambelli

2010

Journal of Banking & Finance

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“…The results of Jain and Kini (2000) indicate that venture capitalist involvement improves the survival profile of IPO issuers. Indeed, they monitor the firm on a day to day basis, assist management, and often occupy a seat in the board of directors (Suchard, 2009). Thus, we expect that VC-backed IPOs are less likely to fail and to underperform than non-VC-backed IPOs.…”

Section: Control Variables: Other Factors Influencing the Longterm Pementioning

confidence: 99%

Earnings management and performance of French IPO companies

Djerbi¹,

Jarboui²

2013

J. Account. Taxation

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In this paper, we examine the impact of discretionary current accruals on the performance of French IPO companies. We first note income-increasing earnings management in the first year as a public company and not in the year before the IPO (Initial Public Offerings). Based on a sample of 139 French IPOs over the period 1999 to 2007, including 38 failures, we also document that companies associated with aggressive earnings management in the IPO process, tend to suffer from subsequently poor returns and to delist for performance failure after IPO. However, we find no evidence to suggest that the level of initial return is negatively related to discretionary current accruals.

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“…Venture capitalists provide both knowledge and resources to the firm, and typically also perform a thorough and extensive due diligence before they invest in a firm. Afterwards, they monitor the firm on a day to day basis, assist management, and often occupy a seat in the board of directors (Suchard, 2009). Overall, empirical researchers expect that firms with a venture capitalist as an early investor are less underpriced (Megginson and Weiss, 1991).…”

Section: Traditional Firm-specific and Issue-specific Risk Factorsmentioning

confidence: 99%