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Learning and Signalling in the French and German Venture Capital Industries Author info | Abstract | Publisher info | Download info | Related research | Statistics Michael Stolpe
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This paper analyses the efficiency of venture capital and its impact on primary equity markets in France and Germany. It shows that venture capital operates according to the signalling model in France and according to the learning model in Germany. Only the learning model can serve as a rationale for government subsidies. In the signalling model, many young venture capital firms succeed without a protected learning period because they already excel in the screening, monitoring and management supporting services they provide. They will seek to signal their quality to outsiders by taking portfolio firms public early. A variety of empirical tests and policy implications are discussed.
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Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number
1156.
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Length: 99 pages
Date of creation: Apr 2003Date of revision:
Handle: RePEc:kie:kieliw:1156Contact details of provider: Phone: +49 431 8814-1 Fax: +49 431 85853 Email: Web page: http://www.ifw-kiel.de
For technical questions regarding this item, or to correct its listing, contact: (Dieter Stribny).
Keywords: venture capital ; initial public offerings ; underpricing ; learning-by-doing ; signalling ; new technology-based firms ; Other versions of this item:
Find related papers by JEL classification: G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies G15 - Financial Economics - - General Financial Markets - - - International Financial Markets G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
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"The Interaction between Product Market and Financing Strategy: The Role of Venture Capital ,"
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Gompers, Paul A., 1996.
"Grandstanding in the venture capital industry ,"
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Sophie Manigart & Wouter De Maeseneire, 2003.
"Initial returns: underpricing or overvaluation ? Evidence from easdaq and euronm ,"
Vlerick Leuven Gent Management School Working Paper Series
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Ljungqvist, Alexander P., 1997.
"Pricing initial public offerings: Further evidence from Germany ,"
European Economic Review ,
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Richard B. Carter & Frederick H. Dark & Ajai K. Singh, 1998.
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Michael Stolpe, 2004.
"Non-Market Interaction in Primary Equity Markets: Evidence from France and Germany ,"
Kiel Working Papers
1211, Kiel Institute for the World Economy.
[Downloadable!]
Michael Stolpe, 2004.
"Europe's Entry into the Venture Capital Business: Efficiency and Policy ,"
Kiel Working Papers
1223, Kiel Institute for the World Economy.
[Downloadable!]
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