Abstract
This paper investigates the short-run price performance of venture capital trust (VCT) initial public offerings (IPOs). We find a very small positive first-day market-adjusted average abnormal return of 0.056% for VCT IPOs. This positive return is non-existent at the end of the seventh and twenty-first trading days. The abnormal returns for VCT IPOs are much smaller than those for non-financial IPOs over the sample period. Furthermore, we find no trading activities in the short-run aftermarket of VCTs.
Original language | English |
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Pages (from-to) | 177-182 |
Journal | Finance Research Letters |
Volume | 25 |
Early online date | 27 Oct 2017 |
DOIs | |
Publication status | Published - Jun 2018 |
Keywords
- venture capital trusts
- initial public offerings
- abnormal returns