capital

The authors study the relation between initial public offering (IPO) investment and the rate of interest. They model the IPO timing decision and show that the implied relation between interest rates and investment is non-monotonic, and the data support the implication.

The authors present evidence that an increase in investment as a share of GDP predicts a higher growth rate of output per worker, not only temporarily, but also in the steady state. These results are found using pooled annual data for a large panel of countries, using pooled data for non-overlapping five-year periods, or allowing for heterogeneity across countries in regression coefficients.

The authors examine when venture capital firms (VCFs) learn from their portfolio companies. They argue that VCF experience itself, the specific configuration of the knowledge bases of the two parties, the quality of the relationship, and the ongoing performance of the venture will affect the amount of learning a VCF will derive from a specific investment.

The author argues that the equilibrium degree of open-ending in an economy can be excessive from the point of view of investors. One implication of the analysis is that, even absent short-sales constraints or other frictions, economically large mispricings can coexist with rational, competitive arbitrageurs who earn small excess returns.

The paper uses historically informed case studies of Israel and the U.S. to develop an appreciative model of how the venture capital industries in these two nations came into being. Findings indicate that despite its recent crisis, the Israeli case proves that it is possible for follower nations with the right preconditions to develop a vibrant industry far more rapidly than did the U.S.

The article investigates the preferential allocation, or
"spinning," of shares in initial public offerings by
examining the offering process and the incentives of underwriters, issuers, and investors. Through this examination of the participants and the process, it locates the harm of spinning in the underpricing of initial public offerings.

The paper examines the quality of financial statements reported by private equity (PE) backed companies in the years around the initial PE investment. The authors study both pre- and post-investment earnings characteristics of a unique hand-collected sample of 556 Belgian unlisted companies, receiving PE financing between 1985 & 1999, and a matched non-PE backed sample.

The study examines empirically the syndication of
equity by multiple venture capitalists in Germany. The results show that the syndication of equity and the number of venture capitalists involved cannot be fully explained by firm characteristics like size, age or industry affiliation.

The report from Growthink is based on a comprehensive analysis of 1,860 companies that raised more than $19 billion of venture capital in 2003 and provides a detailed profile of women-led, venture capital (VC)-funded, privately-held business enterprises and companies with women executives.

The report found more than $5.5 billion of venture capital was invested in 502 private companies in Q4 2003. This represents the first quarter-to-quarter increase in funding in two years and the largest increase since early 2000. Among major metropolitan areas, the San Francisco Bay Area continued to lead the nation with $1.5 billion in investments, or 27.4 percent of the nations total, and 139 companies securing deals.