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An Empirical Research About Venture Capital Underweight Exit Behavior And Factors Influencing

Posted on:2016-12-31Degree:MasterType:Thesis
Country:ChinaCandidate:N JinFull Text:PDF
GTID:2309330473954517Subject:Logistics engineering
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As a periodic equity investment, Venture capital has its unique advantage in promoting the development of high technology enterprise. With the high risk and return investment projects, VCs need periodically exit to cash rewards. With the launching of GEM in 2009, it provides a more convenient exit channel for VCs. After the startup successfully listing and meeting the lock-up period requirements, Whether and How VCs underweight, may not only relates to the final return, but also have an importantly influence on the development of the VC industry, even the development of the high technology industries.Based on the introduction of the research background and significance, simultaneously review theoretical literature, this paper uses a exit case sample consists of 199 start-ups both meet the conditions of listed on the GEM from 2009 to 2012 and have VCs background, independently analyze the influence and difference between the exit return, stock liquidity and the probability of VCs’ exit decision in different period after the non-tradable shares released. Furtherly, we break up the stock liquidity into two components which named long-run liquidiy and transitory liquidity, to analysis the relationship between these two kinds of stock liquidity, exit return with the interval and scale of the underweight decision which is made by VCs with different shareholding.The descriptive results showed that GEM has become the main exit channel for VCs in our country. VCs have a timing behavior when reducing holding-shares. At the same time, the exit return leads to positive probability of younger VCs’ underweight decision, and this effect is stronger in 3-month window. Moreover, the regression result shows that VC always put exit return in the first place under the lower equity positions, the VCs will frequently and largerly exit when long-run liquidity is high, and reduce the underweight interval when transitory liquidity is lower under the low shareholding ratio.
Keywords/Search Tags:Venture Capital, Initial Public Offering, Stock Liquidity, Exit Return
PDF Full Text Request
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