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Barry, C. B., Muscarella, C. J., Peavy, J. W. et al. (1990). The Role of Venture in the Creation of Public Companies. Journal of Financial Economics, 27, 447-471.
https://doi.org/10.1016/0304-405X(90)90064-7

has been cited by the following article:

• TITLE: The Influence of Venture Capital Investment on Underpricing of Second-Board Market IPO

  AUTHORS: Ling Wu

  KEYWORDS: Venture Capital, Second-Board Market, IPO Underpricing

  JOURNAL NAME: Journal of Financial Risk Management, Vol.6 No.1, March 10, 2017

  ABSTRACT: This study introduces venture capital investment as a variable in underpricing of stock’s IPO. From the theoretical perspective, this study uses four points of view—Certification, Supervision, Adverse selection and Grandstanding theory, to explain the relationship of venture capital investment and underpricing of IPO. In real empirical part, this study takes 125 second-board companies as a sample to research on the relationship among venture capital investment, the characteristics of venture capital and underpricing of IPO. The finding shows that in the second-board market, companies which have venture capital institutions involved show a higher IPO underpricing rate compared to the companies which have no venture capital institutions involved. The main finding is that there is irrational investment behavior in the market.