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Author:

Yang, Songling (Yang, Songling.) | Li, Hemei (Li, Hemei.) | Li, Juncheng (Li, Juncheng.) | Zhang, Qiuyue (Zhang, Qiuyue.) | Shi, Qianqian (Shi, Qianqian.)

Indexed by:

SSCI Scopus

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.

Keyword:

Information asymmetry Venture capital Cash needs SEO underpricing Seasoned equity offering

Author Community:

  • [ 1 ] [Yang, Songling]Beijing Univ Technol, Sch Econ & Management, Beijing, Peoples R China
  • [ 2 ] [Zhang, Qiuyue]Beijing Univ Technol, Sch Econ & Management, Beijing, Peoples R China
  • [ 3 ] [Shi, Qianqian]Beijing Univ Technol, Sch Econ & Management, Beijing, Peoples R China
  • [ 4 ] [Li, Hemei]Renmin Univ China, Sch Finance, Beijing, Peoples R China
  • [ 5 ] [Li, Juncheng]Chinese Acad Social Sci, Inst Finance & Banking, Beijing 100028, Peoples R China

Reprint Author's Address:

  • [Li, Juncheng]Chinese Acad Social Sci, Inst Finance & Banking, Beijing 100028, Peoples R China

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Source :

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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