Underpricing of CVC and IVC backed IPOs : do they differ?

• Autor(a) principal: Murer, Dennis
• Data de Publicação: 2022
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.14/39246
• topic: Initial public offering; Venture Capital; Corporate Venture Capital; Independent Venture Capital; Underpricing; Oferta pública inicial; Capital de Risco; Capital de Risco Corporativo; Capital de Risco Independente; Desprecificação; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

This dissertation compares the impact of CVC and IVC backing on the underpricing of IPOs. A dataset was compiled consisting of 76 CVC backed and 536 IVC backed companies based in the United States which went public in the period from 2000 to 2020. The required information was taken from Thomson Reuters and Compustat Capital IQ. OLS regressions, a matching method according to Megginson and Weiss (1991), and a propensity score matching method were used. In addition to the entire period from 2000 to 2020 the periods 2000 to 2009 and 2010 to 2020 were examined. The OLS regressions and the matching method of Megginson and Weiss (1991) showed a significant difference in underpricing between CVC backed and IVC backed IPOs for the period from 2000 to 2009. The underpricing of CVC backed IPOs is significantly lower than the underpricing of IVC backed IPOs for this period. Although the propensity score matching results also showed a lower underpricing of CVC backed IPOs than IVC backed IPOs, these results were not significant. The results of this dissertation thus show that the difference in the influence of CVC and IVC backing on underpricing in an IPO has changed over time. While there was still a significant difference from 2000 to 2009 in two of the three models, this difference is no longer present in the more recent period from 2010 to 2020.