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The impact of venture capital investment duration on the survival of French IPOs

  • Sophie Pommet

    ()

    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis [UNS])

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    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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    Paper provided by HAL in its series Working Papers with number halshs-00923957.

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    Date of creation: 2013
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    Handle: RePEc:hal:wpaper:halshs-00923957
    Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00923957
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