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dc.contributor.advisorTong, Wilson (AF)en_US
dc.contributor.advisorLin, Ji Chai (AF)en_US
dc.contributor.advisorCheng, Zhuo (AF)en_US
dc.contributor.authorXu, Junen_US
dc.description5, 56 pages : illustrationsen_US
dc.descriptionPolyU Library Call No.: [THS] LG51 .H577M AF 2019 Xuen_US
dc.description.abstractI explore three ways in which VC firms' network affects the IPO characteristics of their portfolio companies. First, adding more values to their portfolio companies, the better-connected VC firms can make their portfolio companies perform better after IPO. Secondly, the better-connected VC firms have stronger bargaining power, leading to more stringent disciplining on their portfolio companies. Thirdly, the better-connected VC firms have more channels to disseminate the information of its portfolio companies to the public market. First, I find that IPO companies invested by more central VC firms have higher rate of return on assets (ROA) and spend more R&D in the post-IPO years. Second, companies invested by more central VC firms have lower levels of earnings management in the several years prior to their IPO. Third, companies invested by more central VC firms are associated with larger absolute values of offer price revisions. Fourth, companies invested by more central VC firms have greater IPO market valuation, which are reflected in the higher Tobin's q. Fifth, companies invested by more central VC firms induce greater interest on some important financial market players. Such companies will be followed by more sell-side analysts and higher percent of their shares will be hold by institutional investors. Lastly, the stocks of IPO companies invested by more central VC firms enjoy higher market turnover and better one year post-IPO performance. Overall, my results are consistent with the notion that more central VC firms are able to provide more value-adding service to their portfolio companies, to improve the corporate governance of their portfolio companies, and to draw greater market attention to their portfolio companies.en_US
dc.description.sponsorshipSchool of Accounting and Financeen_US
dc.publisherThe Hong Kong Polytechnic Universityen_US
dc.rightsAll rights reserved.en_US
dc.subjectVenture capitalen_US
dc.subjectBusiness networksen_US
dc.subjectGoing public (Securities)en_US
dc.titleVenture capital firm network and initial public offering characteristicsen_US
dc.description.degreeM.Phil., School of Accounting and Finance, The Hong Kong Polytechnic University, 2019en_US
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