PRICING AND OPERATING EFFICIENCY OF VENTURE-BACKED AND NONVENTURE-BACKED INTERNET IPOS

Academy of Accounting and Financial Studies Journal,  January, 2007  by Ghosh, Arvin

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ABSTRACT

Initial Public Offerings (IPOs) were the most popular form to raise new capital in the united States during the last decade (1990-2000). Thousands of companies went public for the first time, particularly in the technology-heavy Nasdaq stock market. Along with the regular IPOs came the Internet IPOs backed by the venture-capitalists, who specialize in financing promising start-up companies and bringing them public. When we examine these Internet IPOs issued during 1996-2001, we find that the first-day returns of both the venture-backed and nonventure-backed IPOs were much higher than ...

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