search query: @author Barry, C. B. / total: 12
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| Author: | Barry, C. B. |
| Title: | The role of venture capital in the creation of public companies |
| Journal: | Journal of Financial Economics
1990 : OCT, VOL. 27:2, p. 447-471 |
| Index terms: | VENTURE CAPITAL PUBLIC CORPORATIONS |
| Language: | eng |
| Abstract: | A large set of initial public offerings (IPOs) by venture-capital-backed companies is examined. It is found that venture capitalist specialize their investments in firms to provide intensive monitoring services. Consistent with their monitoring role, the venture capitalist take concentrated equity positions, maintain their investment beyond the IPO, and serve on the boards of their portfolio firms. The quality of their monitoring services appears to be recognized by capital markets through lower underpricing for IPOs with better monitors. |
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