The Impact of Private Equity and Venture Capital Funds on post-IPO Operational and Financial Performance in Brazilian invested companies
Autor(a) principal: | |
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Data de Publicação: | 2019 |
Outros Autores: | , , |
Tipo de documento: | Artigo |
Idioma: | eng por |
Título da fonte: | BBR. Brazilian Business Review (English edition. Online) |
Texto Completo: | http://www.bbronline.com.br/index.php/bbr/article/view/511 |
Resumo: | The present article seeks to analyze the legacy and its persistence over time in terms of financing and operational policies and financial performance, of companies invested by Private Equity and Venture Capital funds (PE/VC). The PE/VC industry is characterized by the function of identifying companies with large return potentials and that grow arithmetically – due to capital constraints – to provide adequate and necessary sources of capital and experience for exponential growth. In this study, we used four measures that relate to companies’ financial policies and their persistence over time: i) cash & equivalents; ii) leverage; iii) Return on Assets (ROA); and iv) sales growth. The results suggest that PE / VC invested companies imply higher levels of cash & equivalents and are associated with a lower level of leverage during the first 5 years after the IPO. In addition, companies financed by PE/VC funds show higher profitability and higher sales growth compared to non-invested companies in the short term, i.e., in the first 3 years after the IPO. |
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The Impact of Private Equity and Venture Capital Funds on post-IPO Operational and Financial Performance in Brazilian invested companiesImpacto dos Fundos de Private Equity e Venture Capital no Desempenho Operacional e Financeiro pós IPO nas empresas brasileiras investidasVenture CapitalOperational PerformanceFinancial PerformanceInitial Public Offering of SharesCapital de RiscoDesempenho OperacionalDesempenho FinanceiroOferta Pública Inicial de AçõesThe present article seeks to analyze the legacy and its persistence over time in terms of financing and operational policies and financial performance, of companies invested by Private Equity and Venture Capital funds (PE/VC). The PE/VC industry is characterized by the function of identifying companies with large return potentials and that grow arithmetically – due to capital constraints – to provide adequate and necessary sources of capital and experience for exponential growth. In this study, we used four measures that relate to companies’ financial policies and their persistence over time: i) cash & equivalents; ii) leverage; iii) Return on Assets (ROA); and iv) sales growth. The results suggest that PE / VC invested companies imply higher levels of cash & equivalents and are associated with a lower level of leverage during the first 5 years after the IPO. In addition, companies financed by PE/VC funds show higher profitability and higher sales growth compared to non-invested companies in the short term, i.e., in the first 3 years after the IPO.O presente artigo buscou analisar o legado e sua persistência ao longo do tempo, em termos de políticas de financiamento e performances operacional e financeira, de empresas investidas por fundos de Private Equity e Venture Capital (PE/VC). A indústria de PE/VC é caracterizada pela função de identificar empresas com grandes potenciais de retorno e que crescem aritmeticamente – devido a limitações de capital – para proporcionar fontes de capital e experiência adequadas e necessárias para o crescimento exponencial. Nesse estudo, utilizaram-se quatro medidas que se relacionam com a política financeira das empresas e sua persistência ao longo do tempo: i) disponibilidades de caixa; ii) alavancagem; iii) ROA (Return on Assets); e iv) crescimento de vendas. Os resultados sugerem que empresas investidas por PE/VC implicamníveis mais elevados de disponibilidades de caixa e estão associadas a um menor nível de alavancagem durante os primeiros 5 anos após o IPO. Além disso, empresas financiadas por fundos de PE/VC apresentam rentabilidade e crescimento de vendas superior se comparadas às empresas não investidas no curto prazo, ou seja, nos primeiros 3 anos após o IPO.FUCAPE Business Shool2019-01-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionPeer-reviewed ArticleArtigo revisado pelos paresapplication/pdfapplication/pdfhttp://www.bbronline.com.br/index.php/bbr/article/view/51110.15728/bbr.2019.16.1.6Brazilian Business Review; Vol. 16 No. 1 (2019): January to February 2019; 87-101Brazilian Business Review; v. 16 n. 1 (2019): Janeiro a Fevereiro 2019; 87-1011808-23861807-734Xreponame:BBR. Brazilian Business Review (English edition. Online)instname:Fucape Business School (FBS)instacron:FBSengporhttp://www.bbronline.com.br/index.php/bbr/article/view/511/775http://www.bbronline.com.br/index.php/bbr/article/view/511/776Copyright (c) 2019 Brazilian Business Reviewhttps://creativecommons.org/licenses/by/4.0info:eu-repo/semantics/openAccessSincerre, Bianca PilotoSampaio, JoelsonFamá, RubénsFlores, Eduardo S2019-01-01T09:05:46Zoai:ojs.pkp.sfu.ca:article/511Revistahttps://www.bbronline.com.br/index.php/bbr/indexONGhttp://www.bbronline.com.br/index.php/bbr/oai|| bbronline@bbronline.com.br1808-23861808-2386opendoar:2019-01-01T09:05:46BBR. Brazilian Business Review (English edition. Online) - Fucape Business School (FBS)false |
dc.title.none.fl_str_mv |
The Impact of Private Equity and Venture Capital Funds on post-IPO Operational and Financial Performance in Brazilian invested companies Impacto dos Fundos de Private Equity e Venture Capital no Desempenho Operacional e Financeiro pós IPO nas empresas brasileiras investidas |
title |
The Impact of Private Equity and Venture Capital Funds on post-IPO Operational and Financial Performance in Brazilian invested companies |
spellingShingle |
The Impact of Private Equity and Venture Capital Funds on post-IPO Operational and Financial Performance in Brazilian invested companies Sincerre, Bianca Piloto Venture Capital Operational Performance Financial Performance Initial Public Offering of Shares Capital de Risco Desempenho Operacional Desempenho Financeiro Oferta Pública Inicial de Ações |
title_short |
The Impact of Private Equity and Venture Capital Funds on post-IPO Operational and Financial Performance in Brazilian invested companies |
title_full |
The Impact of Private Equity and Venture Capital Funds on post-IPO Operational and Financial Performance in Brazilian invested companies |
title_fullStr |
The Impact of Private Equity and Venture Capital Funds on post-IPO Operational and Financial Performance in Brazilian invested companies |
title_full_unstemmed |
The Impact of Private Equity and Venture Capital Funds on post-IPO Operational and Financial Performance in Brazilian invested companies |
title_sort |
The Impact of Private Equity and Venture Capital Funds on post-IPO Operational and Financial Performance in Brazilian invested companies |
author |
Sincerre, Bianca Piloto |
author_facet |
Sincerre, Bianca Piloto Sampaio, Joelson Famá, Rubéns Flores, Eduardo S |
author_role |
author |
author2 |
Sampaio, Joelson Famá, Rubéns Flores, Eduardo S |
author2_role |
author author author |
dc.contributor.author.fl_str_mv |
Sincerre, Bianca Piloto Sampaio, Joelson Famá, Rubéns Flores, Eduardo S |
dc.subject.por.fl_str_mv |
Venture Capital Operational Performance Financial Performance Initial Public Offering of Shares Capital de Risco Desempenho Operacional Desempenho Financeiro Oferta Pública Inicial de Ações |
topic |
Venture Capital Operational Performance Financial Performance Initial Public Offering of Shares Capital de Risco Desempenho Operacional Desempenho Financeiro Oferta Pública Inicial de Ações |
description |
The present article seeks to analyze the legacy and its persistence over time in terms of financing and operational policies and financial performance, of companies invested by Private Equity and Venture Capital funds (PE/VC). The PE/VC industry is characterized by the function of identifying companies with large return potentials and that grow arithmetically – due to capital constraints – to provide adequate and necessary sources of capital and experience for exponential growth. In this study, we used four measures that relate to companies’ financial policies and their persistence over time: i) cash & equivalents; ii) leverage; iii) Return on Assets (ROA); and iv) sales growth. The results suggest that PE / VC invested companies imply higher levels of cash & equivalents and are associated with a lower level of leverage during the first 5 years after the IPO. In addition, companies financed by PE/VC funds show higher profitability and higher sales growth compared to non-invested companies in the short term, i.e., in the first 3 years after the IPO. |
publishDate |
2019 |
dc.date.none.fl_str_mv |
2019-01-01 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Peer-reviewed Article Artigo revisado pelos pares |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://www.bbronline.com.br/index.php/bbr/article/view/511 10.15728/bbr.2019.16.1.6 |
url |
http://www.bbronline.com.br/index.php/bbr/article/view/511 |
identifier_str_mv |
10.15728/bbr.2019.16.1.6 |
dc.language.iso.fl_str_mv |
eng por |
language |
eng por |
dc.relation.none.fl_str_mv |
http://www.bbronline.com.br/index.php/bbr/article/view/511/775 http://www.bbronline.com.br/index.php/bbr/article/view/511/776 |
dc.rights.driver.fl_str_mv |
Copyright (c) 2019 Brazilian Business Review https://creativecommons.org/licenses/by/4.0 info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
Copyright (c) 2019 Brazilian Business Review https://creativecommons.org/licenses/by/4.0 |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf application/pdf |
dc.publisher.none.fl_str_mv |
FUCAPE Business Shool |
publisher.none.fl_str_mv |
FUCAPE Business Shool |
dc.source.none.fl_str_mv |
Brazilian Business Review; Vol. 16 No. 1 (2019): January to February 2019; 87-101 Brazilian Business Review; v. 16 n. 1 (2019): Janeiro a Fevereiro 2019; 87-101 1808-2386 1807-734X reponame:BBR. Brazilian Business Review (English edition. Online) instname:Fucape Business School (FBS) instacron:FBS |
instname_str |
Fucape Business School (FBS) |
instacron_str |
FBS |
institution |
FBS |
reponame_str |
BBR. Brazilian Business Review (English edition. Online) |
collection |
BBR. Brazilian Business Review (English edition. Online) |
repository.name.fl_str_mv |
BBR. Brazilian Business Review (English edition. Online) - Fucape Business School (FBS) |
repository.mail.fl_str_mv |
|| bbronline@bbronline.com.br |
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