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

Tianna Yang; Wenxuan Hou; Ping  Li

doi:10.1016/j.frl.2017.10.016

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

Tianna Yang, Wenxuan Hou, Ping Li

Research output: Contribution to journal › Article › peer-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 language	English
Pages (from-to)	177-182
Journal	Finance Research Letters
Volume	25
Early online date	27 Oct 2017
DOIs	https://doi.org/10.1016/j.frl.2017.10.016
Publication status	Published - Jun 2018

Keywords / Materials (for Non-textual outputs)

venture capital trusts
initial public offerings
abnormal returns

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10.1016/j.frl.2017.10.016

YangEtalFRL2017ShortRunPricePerformanceAccepted author manuscript, 901 KBLicence: Creative Commons: Attribution-NonCommercial-NoDerivatives (CC BY-NC-ND)

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title = "Short-run price performance of venture capital trust in initial public offerings",

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.",

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AU - Yang, Tianna

AU - Hou, Wenxuan

AU - Li, Ping

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N2 - 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.

AB - 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.

KW - venture capital trusts

KW - initial public offerings

KW - abnormal returns

U2 - 10.1016/j.frl.2017.10.016

DO - 10.1016/j.frl.2017.10.016

M3 - Article

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VL - 25

SP - 177

EP - 182

JO - Finance Research Letters

JF - Finance Research Letters

ER -

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

Abstract

Keywords / Materials (for Non-textual outputs)

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