| What Drives the Venture Capital’s Exit Strategy?
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Jinho Lee, Young S. |
| 벤처캐피탈의 투자회수 결정요인에 관한 연구 |
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이진호, 박영석 |
1한남대학교
2서강대학교 |
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| Abstract |
This study examines whether the return on venture capital (VC) investment is determined by positive assortative matching between VC investors and firms that went public on the KOSDAQ during the period of 2010 until 2015. According to the positive assortative matching hypothesis, VC investments and initial public offerings (IPOs) are selectively matched when the quality of counterpart is mutually secured. Therefore it is expected that VC investors and IPO firms will be both in reputable quality at listing in order for IPOs to be timely, valuable exits and financing channels for the investors and the firms, respectively.
The results show that VC-backed IPOs are of relatively high quality firms compared to non-VC-backed IPOs. However, there is no evidence that IPO firms choose good-quality VC investors at IPOs. In other words, the VC investors and their invested firms at IPO are not paired by positive assortative matching that mutually guarantees the quality of counterpart, but by rather unilateral influences from the VC side. These results suggest that an IPO is not as much attractive as an exit strategy to the VC investor than as a means of direct financing to the firm. Therefore, it is necessary for VC investors to diversify their maturity options beyond IPOs. |
| Key Words:
벤처캐피탈,IPO,투자회수,코스닥시장,선택적 매칭가설,Venture Capital,Initial Public Offering,Exit Strategy,KOSDAQ,Positive Assortative Matching Hypothesis |
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