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Abstract:
We analyze how venture capital (VC) affects the timing of seasoned equity offering (SEO) issuance and the post-SEO performance of Chinese companies during the 2006-2018 period. Empirical analysis confirms that VC "accelerates" SEO issuance because of greater financing demands. Thus, VC-backed firms prefer to issue their first SEOs earlier than non-VC-backed firms. Moreover, quick SEOs promoted by venture capitalists are more underpriced because of information asymmetry.
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ASIA-PACIFIC JOURNAL OF FINANCIAL STUDIES
ISSN: 2041-9945
Year: 2020
Issue: 6
Volume: 49
Page: 884-910
ESI Discipline: ECONOMICS & BUSINESS;
ESI HC Threshold:112
Cited Count:
WoS CC Cited Count: 0
SCOPUS Cited Count:
ESI Highly Cited Papers on the List: 0 Unfold All
WanFang Cited Count:
Chinese Cited Count:
30 Days PV: 7
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