Short-run price performance of venture capital trust in initial public offerings

Tianna Yang, Wenxuan Hou, Ping Li

Research output: Contribution to journalArticlepeer-review

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 languageEnglish
Pages (from-to)177-182
JournalFinance Research Letters
Volume25
Early online date27 Oct 2017
DOIs
Publication statusPublished - Jun 2018

Keywords

  • venture capital trusts
  • initial public offerings
  • abnormal returns

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