Abstract
ABSTRACT Our study examines whether Venture capitalists (VCs) prefer independent or syndicated investments when faced with exit uncertainty. By exploiting an initial public offering (IPO) suspension in China, our analysis reveals that VCs are more likely to independently invest in start-ups during such a suspension, which is driven by the screening and monitoring roles of VCs. Specifically, we find a greater likelihood of VC exits and a higher return on investment for VCs investing in start-ups during the suspension. Further, start-ups that obtain financing from VCs during the suspension are strictly monitored by VCs and reduce the extent of upward earnings management in the pre-IPO year.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
