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Protected "VC Acquisitions Paper" [edit=trusted:move=trusted:read=trusted]
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psql -h 128.32.252204.201 203 -U ed_egan Acqs ==Current Status== This paper was submitted (dual submission) to the 3rd Annual Entrepreneurial Finance and Innovation Conference (EFIC) conference and the Review of Corporate Finance Studies (RCFS). It was rejected from both. The key points from the reviewers were:*We should explain how we get a different result from Masulis and Nahata (2011), who find a +3% return premium to VC-backed acquisitions*We should use our continous measures of IA (i.e., look to find a monotonic effect). And consider within-industry acquisitions to see whether this mitigates IA problems.*To back up the winner's curse we should consider the number of competing bidders.*Possibly we should consider long rum performance and attempt to explain why the acquirers buy VC-backed firms.*Focus less on the univariate results. The obvious possibilities for this paper are to:*Focus more on the IA.*Do a supply-side VC analysis (i.e., include reputations, the possibility of grandstanding, etc.) The immediate 'to do' is:*Read the Masulis and Nahata (2011) paper carefully.*Do a proper literature review again! ===Lit Review=== The main [[VC Acquisitions Lit Review]] page details searches for papers related to the intersection of venture capital, acquisitions and explaining abnormal returns. There are seperate lit reviews for related topics, such as:*[[Information Asymmetry Measures]]*[[Information Asymmetry in Acquisitions Lit Review]]*[[The Winners Curse]] The key papers found were:*[[Masulis Nahata (2011) - Venture Capital Conflicts Of Interest]]*[[Gompers Xuan (2008) - Bridge Building In Venture Capital Backed Acquisitions]]*[[Gompers Xuan (2006) - The Role Of Venture Capitalists In The Acquisition Of Private Companies]]*[[Benson Ziedonis (2010) - Corporate Venture Capital And The Returns To Acquiring Portfolio Companies]] ====Comparing Results==== Comparing our CARs with those from the literature (some values are inferred - see the review pages) Our Paper M&N'11 G&X'06 G&X'08 B&Z'10 Data Range 80-'10 91-06 90-01 92-06 80-03 Model Mkt Sub Mkt Mkt Mkt Univariate Private Target 0.7% 4.8% 1.5% NA NA VC 0.3% 6.3% 0.6% 0.7% 0.7% Non-VC 0.8% 3.4% 1.6% NA NA With Controls VC indicator 0.5% 2.7% 0.3% Target Ind. Q 4.8% Related 0.5% R2 1.6% 4.3% 1.6% N 22,961 490 8693 1261 489 Note that using the subtraction model our univariate results are: 0.95% (all), 0.98% (Non-VC) and 0.59% (VC).
==Latest Version==
