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Stock exchange markets for new ventures

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  • Carpentier, Cécile
  • L'Her, Jean-François
  • Suret, Jean-Marc
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    Abstract

    In Canada, a venture stock market lists microcap firms at a pre-revenue stage, and competes with both formal and informal venture capital (VC). This market provides a higher rate of return and seven times as many new listings to the main exchange as traditional VC. After they graduate to the main market, new listings on the main exchange succeed even if they are not venture-backed. Our results contradict the premise that because it lacks skills, tools and value-added capabilities, a public venture market is unable to compete with a private one.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Business Venturing.

    Volume (Year): 25 (2010)
    Issue (Month): 4 (July)
    Pages: 403-422

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    Handle: RePEc:eee:jbvent:v:25:y:2010:i:4:p:403-422

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    Web page: http://www.elsevier.com/locate/jbusvent

    Related research

    Keywords: Public venture capital Start-up Graduation Success rate Stock exchange;

    References

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    Citations

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    Cited by:
    1. Cécile Carpentier & Jean-François L’Her & Jean-Marc Suret, 2013. "Private investment in small public entities," Small Business Economics, Springer, Springer, vol. 41(1), pages 149-168, June.
    2. Gerakos, Joseph & Lang, Mark & Maffett, Mark, 2013. "Post-listing performance and private sector regulation: The experience of London's Alternative Investment Market," Journal of Accounting and Economics, Elsevier, Elsevier, vol. 56(2), pages 189-215.
    3. Dehlen, Tobias & Zellweger, Thomas & Kammerlander, Nadine & Halter, Frank, 2014. "The role of information asymmetry in the choice of entrepreneurial exit routes," Journal of Business Venturing, Elsevier, Elsevier, vol. 29(2), pages 193-209.

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