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The effect of venture capital backing on innovation in newly public firms

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dc.contributor.coauthorAldatmaz, Serdar
dc.contributor.departmentDepartment of Business Administration
dc.contributor.kuauthorÇelikyurt, Uğur
dc.contributor.schoolcollegeinstituteCollege of Administrative Sciences and Economics
dc.date.accessioned2025-01-19T10:29:47Z
dc.date.issued2023
dc.description.abstractWe study the effect of VC-backing on innovation in newly public firms and find that it is negatively related to patents produced and citations received within the initial years following an IPO - our estimates indicate that VC-backed firms produce 13% fewer patents than nonVC-backed firms within the first year post-IPO. Our findings suggest that this adverse effect is a consequence of VCs timing their portfolio companies' IPOs at the peak of innovation followed by a decline post-IPO. Additionally, VC-backing leads to higher growth in sales and productivity in newly public firms pointing to a shift in VC focus from creating into commercializing innovation post-IPO. We address endogeneity concerns with an instrumental variables approach.
dc.description.indexedbyWOS
dc.description.indexedbyScopus
dc.description.publisherscopeInternational
dc.description.sponsoredbyTubitakEuN/A
dc.description.volume74
dc.identifier.doi10.1016/j.jempfin.2023.101436
dc.identifier.eissn1879-1727
dc.identifier.issn0927-5398
dc.identifier.quartileQ2
dc.identifier.scopus2-s2.0-85178294985
dc.identifier.urihttps://doi.org/10.1016/j.jempfin.2023.101436
dc.identifier.urihttps://hdl.handle.net/20.500.14288/25950
dc.identifier.wos1122284500001
dc.keywordsVenture capital
dc.keywordsInnovation
dc.keywordsPatents
dc.keywordsNewly public firms
dc.keywordsIPOs
dc.language.isoeng
dc.publisherElsevier
dc.relation.ispartofJournal of Empirical Finance
dc.subjectBusiness, Finance
dc.subjectEconomics
dc.titleThe effect of venture capital backing on innovation in newly public firms
dc.typeJournal Article
dspace.entity.typePublication
local.contributor.kuauthorÇelikyurt, Uğur
local.publication.orgunit1College of Administrative Sciences and Economics
local.publication.orgunit2Department of Business Administration
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relation.isOrgUnitOfPublication.latestForDiscoveryca286af4-45fd-463c-a264-5b47d5caf520
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relation.isParentOrgUnitOfPublication.latestForDiscovery972aa199-81e2-499f-908e-6fa3deca434a

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