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Gompers Xuan (2008) - Bridge Building In Venture Capital Backed Acquisitions (view source)
Revision as of 17:44, 20 July 2012
, 17:44, 20 July 2012New page: This page is referenced under: *VC Acquisitions Paper *VC Acquisitions Lit Review ==Reference== '''Note: This reference needs updating''' Gompers, P.A. and Xuan, Y. (2008), "Bri...
This page is referenced under:
*[[VC Acquisitions Paper]]
*[[VC Acquisitions Lit Review]]
==Reference==
'''Note: This reference needs updating'''
Gompers, P.A. and Xuan, Y. (2008), "Bridge building in venture capital-backed acquisitions", HBS Working paper ([[Media:Gompers Xuan (2008) - Bridge Building In Venture Capital Backed Acquisitions.pdf|pdf]])
@book{gompers2008bridge,
title={Bridge building in venture capital-backed acquisitions},
author={Gompers, P.A. and Xuan, Y.},
year={2008},
publisher={Harvard Business School},
abstract={This paper studies the role of common venture capital investors in alleviating asymmetric information between public acquirers and private venture capital-backed targets. We find that acquisition announcement returns are more positive for acquisitions in which both the target and the acquirer are financed by the same venture capital firm. Similarly, having a common investor increases both the likelihood that a transaction will be all equity-financed as well as the fraction of stock in the overall acquisition payment. In addition, an acquisition is more likely to take place when there is a common venture capital investor linking the acquirer and the target. Our results suggest that common venture capital investors can form a bridge between acquiring and target firms that reduces asymmetric information associated with the transaction for both parties.},
filename={Gompers Xuan (2008) - Bridge Building In Venture Capital Backed Acquisitions.pdf}
}
==Abstract==
This paper studies the role of common venture capital investors in alleviating asymmetric information between public acquirers and private venture capital-backed targets. We find that acquisition announcement returns are more positive for acquisitions in which both the target and the acquirer are financed by the same venture capital firm. Similarly, having a common investor increases both the likelihood that a transaction will be all equity-financed as well as the fraction of stock in the overall acquisition payment. In addition, an acquisition is more likely to take place when there is a common venture capital investor linking the acquirer and the target. Our results suggest that common venture capital investors can form a bridge between acquiring and target firms that reduces asymmetric information associated with the transaction for both parties.
*[[VC Acquisitions Paper]]
*[[VC Acquisitions Lit Review]]
==Reference==
'''Note: This reference needs updating'''
Gompers, P.A. and Xuan, Y. (2008), "Bridge building in venture capital-backed acquisitions", HBS Working paper ([[Media:Gompers Xuan (2008) - Bridge Building In Venture Capital Backed Acquisitions.pdf|pdf]])
@book{gompers2008bridge,
title={Bridge building in venture capital-backed acquisitions},
author={Gompers, P.A. and Xuan, Y.},
year={2008},
publisher={Harvard Business School},
abstract={This paper studies the role of common venture capital investors in alleviating asymmetric information between public acquirers and private venture capital-backed targets. We find that acquisition announcement returns are more positive for acquisitions in which both the target and the acquirer are financed by the same venture capital firm. Similarly, having a common investor increases both the likelihood that a transaction will be all equity-financed as well as the fraction of stock in the overall acquisition payment. In addition, an acquisition is more likely to take place when there is a common venture capital investor linking the acquirer and the target. Our results suggest that common venture capital investors can form a bridge between acquiring and target firms that reduces asymmetric information associated with the transaction for both parties.},
filename={Gompers Xuan (2008) - Bridge Building In Venture Capital Backed Acquisitions.pdf}
}
==Abstract==
This paper studies the role of common venture capital investors in alleviating asymmetric information between public acquirers and private venture capital-backed targets. We find that acquisition announcement returns are more positive for acquisitions in which both the target and the acquirer are financed by the same venture capital firm. Similarly, having a common investor increases both the likelihood that a transaction will be all equity-financed as well as the fraction of stock in the overall acquisition payment. In addition, an acquisition is more likely to take place when there is a common venture capital investor linking the acquirer and the target. Our results suggest that common venture capital investors can form a bridge between acquiring and target firms that reduces asymmetric information associated with the transaction for both parties.
