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The Impact of Venture Capital Investment Duration on the Survival of French IPOs

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  • Sophie Pommet

    (GREDEG CNRS
    University of Nice-Sophia Antipolis, France)

Abstract

Using a sample of 212 IPOs, this paper analyzes the impact of venture capital involvement on the survival time of French IPOs. We find that the ability of venture capitalists to improve the survival of companies is related to the duration of their investment. We show that venture capitalists do not create additional value if investment duration is too short while longer duration allows venture capitalists to monitor the firm efficiently. Our paper provides some interesting results that qualify the findings from empirical studies that highlight the absence of a positive effect of this financing on firm performance in France.

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File URL: http://www.gredeg.cnrs.fr/working-papers/GREDEG-WP-2013-32.pdf
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Bibliographic Info

Paper provided by Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis in its series GREDEG Working Papers with number 2013-32.

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Length: 38 pages
Date of creation: Sep 2013
Date of revision:
Handle: RePEc:gre:wpaper:2013-32

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Keywords: Venture capital; IPO; survival; France;

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References

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