Publication: Venture capitalists on boards of mature public firms
Program
KU-Authors
KU Authors
Co-Authors
Celikyurt, Ugur
Sevilir, Merih
Shivdasani, Anil
Advisor
Publication Date
Language
English
Type
Journal Title
Journal ISSN
Volume Title
Abstract
Venture capitalists (VCs) often serve on the board of mature public firms long after their initial public offering (IPO), even for companies that were not VC-backed at the IPO. Board appointments of VC directors are followed by increases in research and development intensity, innovation output, and greater deal activity with other VC-backed firms. VC director appointments are associated with positive announcement returns and are followed by an improvement in operating performance. Firms experience higher announcement returns from acquisitions of VC-backed targets following the appointment of a VC director to the board. Hence, in addition to providing finance, monitoring and advice for small private firms, VCs play a significant role in mature public firms and have a broader influence in promoting innovation than has been established in the literature.
Description
Source:
Review of Financial Studies
Publisher:
Oxford University Press (OUP) inc
Keywords:
Subject
Business, Finance, Economics