Venture capital and methods of payment in mergers and acquisitions
Copyright policy )Venture capital and methods of payment in mergers and acquisitions
AbstractWe find evidence that venture capital (VC)‐backed targets receive more stock as the method of payment in mergers and acquisitions than non‐VC‐backed targets do, even after controlling for self‐selection bias, differences of characteristics between transactions of VC‐backed and non‐VC‐backed targets and VC information bridge‐building. VC‐backed targets prefer stock of acquirers that are small, young, risky or invest intensively. In addition, we document that the ratio of stock is larger when the targets are financed by reputable VCs, a syndicate of VCs or VCs with low fund maturity. Overall, our findings suggest that VCs strategically hold shares of the acquirers that meet their investment preferences.
- La Trobe University Australia
- Waseda University Japan
- EMLYON Business School France
- National Economics University Viet Nam
Monetary economics, Economics, Developmental psychology, Entrepreneurship and Business Innovation, Social Sciences, FOS: Mechanical engineering, Business, Management and Accounting, Syndicate, Method of payment, Ownership Structure, Engineering, Accounting, Management of Technology and Innovation, Capital Structure, Merger and acquisition, Psychology, Business, Payment, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, Corporate Governance and Financial Performance, Divestment, Maturity (psychological), Venture Capital and Start-Up Financing, Venture capital, Mechanical engineering, FOS: Psychology, Mergers and acquisitions, Stock (firearms), Venture Growth, [SHS.GESTION] Humanities and Social Sciences/Business administration, Finance
Monetary economics, Economics, Developmental psychology, Entrepreneurship and Business Innovation, Social Sciences, FOS: Mechanical engineering, Business, Management and Accounting, Syndicate, Method of payment, Ownership Structure, Engineering, Accounting, Management of Technology and Innovation, Capital Structure, Merger and acquisition, Psychology, Business, Payment, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, Corporate Governance and Financial Performance, Divestment, Maturity (psychological), Venture Capital and Start-Up Financing, Venture capital, Mechanical engineering, FOS: Psychology, Mergers and acquisitions, Stock (firearms), Venture Growth, [SHS.GESTION] Humanities and Social Sciences/Business administration, Finance
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