Business, Management and Accounting
4 years ago

VC-backed Chinese IPOs outperform non-VC firms, reducing long-term underperformance.

1 view
SSRN Electronic Journal
Venture Capitalist Participation and the Performance of Chinese IPOs
Isaac Otchere, Anna P. I. Vong

Paper Summary

Venture capitalists in China play a significant role in the performance of IPOs. VC-backed firms tend to be more underpriced than non-VC firms, but they also perform better in the long run. This suggests that VCs help monitor and support these companies. Additionally, reputable VCs are able to reduce underpricing, showing that their expertise and experience can benefit the firms they invest in.

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