Keeley & Knapp

1994

To compare the deciding factors of success of start-up businesses financed by VC to those businesses that are not financed by VC.

Businesses that are financed by VC have uniform characteristics in terms of the motivation and profile of the entrepreneur, the management process and initial development. These businesses that are financed by VC differ significantly from other start-up businesses.

Mull

1994

To determine the reasons that explain why VCC and private SME, which are characterized by a strong growth potential, interact; to determine the nature of the advantages that each group obtains through this association, the profile of the businesses that receive VC financing, and the mechanisms used in the financing process.

Businesses that are financed by VC demonstrate a high level of growth, greater than foreseen and greater than that of businesses that are not financed by VC. A low value of tangible assets, lower profitability and a shorter life-span are the other significant deciding factors for getting financing. The use of convertible preferred shares is positively related to a growing risk in the business: businesses financed by VC use these securities more than businesses that are not financed by VC.

Jain & Kini

1995

To determine the value-added of VC financing by comparing performance, at the time of the IPO, of businesses that are financed by VC to those that are not financed by VC.

Businesses that are financed by a VCC demonstrate a higher operational performance than that of businesses that are not financed by VC. The market evaluates VCC influences positively as the price at the issuance of businesses financed by VC is greater than that of businesses that are not financed by VC. The quality of monitoring by the VCC is positively related to operational performance after it is listed on the stock exchange.

Murray

1996

To define the conditions for success of businesses that are financed by VCC.

The main traits that successful businesses have in common have to do with competence, the entrepreneur's exceptional track record and the competitive position of their product in a growing market.

Brav & Gompers

1997

To compare the performance of IPO financed by VC to those IPO that are not financed by VC.

Businesses that are financed by VC have a better performance than those that have not been financed by VC when the returns are equally weighted.

Fernandez-Jardon Fernandez & Martinez Cobas

1998

To check the indirect influence of the VCC on the financing structure, formalization and control of SME.

On average, businesses financed by VC are healthier financially, receive greater public assistance, have greater access to information and are more formalized in their decision-making than businesses that are not financed by VC.

Espenlaub, Garrett & Mun

1999

To evaluate the potential conflict of interest of IPO of SME that were previously financed by VCC and whose series underwriter is affiliated to the VCC in the United Kingdom.

IPO whose subscribers are affiliated to VCC perform better than others. These IPOs' long-term performance is positively related to the VCC's reputation whereas its short-term stock market performance is more related to the prestige of the underwriter than that of the VCC.

Doukas & Gônenç

2000

To examine the relationship between the reputation of commercial banks (underwriters) and the long-term performance of IPO.

The long-term performance of businesses that are financed by VC is better to that of businesses that are not financed by VC. When the results are adjusted according to the size, book value on the stock market value and the characteristics of the industry, there is no difference in terms of long-term performance. The influence of commercial banks is not significant.

Jordan, Bradley, Rotenn & Yi

2000

To study the financial performance of businesses at the time of lockup within the context of IPO.

Stock market returns are negative at lockup especially when VCC are involved. Among the businesses that are financed by VC, stock market losses are greater among high technology businesses, businesses that have known the greatest increases after an IPO and those that were introduced to the stock market by the best underwriters.

Engel, Gordon & Hayes

2001

To examine administration practices of businesses that were recently introduced into the stock market.

The authors observed that the businesses that were influenced little by VC show an association between accounting practices and more pronounced stock market performance than is the case of businesses that are very influenced by VC.

Casares Field & Hanka

2002

To examine the financial performance when lockup ends.

The stock market return at the time when this clause ends is negative and weaker when VCC are involved in the sale of equity.

Chesbrough (a)

2002

To analyse performance at spin off.

Of the 35 recent spin-offs from the Xerox corporation, those that had a VCC representative as administrator on the board of directors had better financial performance than others.

Doukas & Gônenç

2002

To examine the relationship between the reputation of commercial banks (underwriters) and the long-term performance of IPO.

The long-term performance of businesses that went with an IPO cannot be explained either by the underwriters' reputation or by the reputation of the VCC. When the results are adjusted for size, book value on stock market value and the characteristics of the industry, the stock market performance of IPO is not different from that of other businesses that are already listed on the stock market.

Engel

2002

To evaluate the impact of VC on job growth in newly created businesses.

VC influences job growth positively.

Hochberg

2002

To study the influence of VCC on a business' administration after the IPO.

The authors note that there are significant differences between businesses financed by VC and those that are not. Businesses that are financed by VC more frequently use conservative accounting practices, are more efficient after using the poison pill, have more independent members on the boards of directors and more frequently hire independent auditors than other businesses.

Jelic, Saadouni & Wright

2002

To study the financial performance and the involvement of VC in management buy-outs on the London stock exchange.

Management buy-outs (MBO) that are influenced by VC are larger, drop out earlier and are less under-valued than the other MBO. The reputation of VCC does not seem to generate better returns.

Kraus

2002

To analyse the under-evaluation of IPO and the influence of VCC on the German market.

The weak under-evaluation of IPO of businesses that are financed by VC disappears when uncertainty and the reputation of the underwriter are taken into consideration. However, IPO realized by the ten best underwriters of businesses financed by VC have a greater under-evaluation than the IPO realized by these same underwriters but whose businesses had not been financed by VCC.

Lee & Wahal

2002

To study the role of VC in the under-evaluation of IPOs.

Businesses financed by VC register greater under-evaluation on the first day of transaction than businesses that have not been financed by VC and the under-evaluation is positively related to capital commitments with the VCC. Under-valuation is also influenced by stock market bubbles.

Manigart, Baeyens & Van Hyfte

2002

To study the rate of survival of Belgian businesses financed by VC after the divestment of the VCC.

Businesses financed by VC do not show a greater probability of survival than businesses that are not financed by VC. However, businesses financed by the two oldest government organizations that specialize in VC have a greater probability of survival that those financed by the other government programs.