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Evaluation of the profitability of companies financed by venture capital (CVC) listed on the French market

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  • Moez Khalfallah
  • Bruno-Laurent Moschetto
  • Frédéric Teulon

Abstract

This paper examines changes in profitability of 146 CVC listed on the French market. The results show disappointing post-IPO profitability. The decline in performance ranges from 9.5% to 32% over a two-year period following the launch on the stock exchange. It also appears that the decline in operating performance is less significant for CVC compared with non CVC over the same period. An analysis of this underperformance shows that CVC supported by reputed VCF manage to limit the decline in operating performance compared to those supported by non-reputed VCF.

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Bibliographic Info

Paper provided by Department of Research, Ipag Business School in its series Working Papers with number 2014-085.

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Length: 21 pages
Date of creation: 12 Feb 2014
Date of revision:
Handle: RePEc:ipg:wpaper:2014-085

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Keywords: Companies financed by venture capital (CVC); Venture capital firms (VCF); Return on assets (ROA); Corporate reputation;

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Cited by:
  1. Kaies Samet & Frédéric Teulon, 2014. "Creative intelligence," Working Papers 2014-362, Department of Research, Ipag Business School.
  2. Lubica Hikkerova & Niaz Kammoun & Jean-Sébastien Lantz, 2014. "Patent Life Cycle: New Evidence," Working Papers 2014-367, Department of Research, Ipag Business School.

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