Venture Capital Reputation, Post-IPO Performance, and Corporate Governance

B-Tier
Journal: Journal of Financial and Quantitative Analysis
Year: 2011
Volume: 46
Issue: 5
Pages: 1295-1333

Authors (4)

Krishnan, C. N. V. (not in RePEc) Ivanov, Vladimir I. (not in RePEc) Masulis, Ronald W. (UNSW Sydney) Singh, Ajai K. (not in RePEc)

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We examine the association of a venture capital (VC) firm’s reputation with the post-initial public offering (IPO) long-run performance of its portfolio firms. We find that VC reputation, measured by the past market share of VC-backed IPOs, has significant positive associations with long-run firm performance measures. While more reputable VCs initially select better-quality firms, more reputable VCs continue to be associated with superior long-run performance, even after controlling for VC selectivity. We find that more reputable VCs exhibit more active post-IPO involvement in the corporate governance of their portfolio firms, and this continued VC involvement positively influences post-IPO firm performance.

Technical Details

RePEc Handle
repec:cup:jfinqa:v:46:y:2011:i:05:p:1295-1333_00
Journal Field
Finance
Author Count
4
Added to Database
2026-01-25