Venture capital backing: financial policies and persistence over time

IF 3.2 Q1 BUSINESS, FINANCE Quantitative Finance and Economics Pub Date : 2021-01-01 DOI:10.3934/qfe.2021029
A. de Carvalho, Pinheiro Roberto, Sampaio Joelson
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Abstract

The present article seeks to analyze the financial policies of companies backed by Private Equity and Venture Capital funds (PE/VC). Our sample consists of firms completing an initial public offering between January 1991 and December 2000. Our hypotheses relate to the difference between VC and non-VC-backed firms in terms of financial policies and their persistence. We use four measures to evaluate the firms' financial policies: i) Cash holdings; ii) Leverage; iii) dividends out of their earnings; and iv) interest coverage. To test the four hypotheses, we run Pooled OLS regressions. The results suggest that VC-backing firms keep a higher level of cash holdings than non-VC-backed firms. This effect lasts for at least 8 years after the IPO. We show that VC-backed firms are associated with a lower level of leverage over the first 8 years after the IPO. Differently, while interest coverage is lower in the first years after the IPO, results are not persistent, even reverting in later years. Finally, we do not find statistically significant evidence of a difference between VC- and non-VC-backed firms on dividend to earnings ratio. Our results are robust across statistical methods and different methodologies.
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风险资本支持:金融政策和长期坚持
本文旨在分析私募股权和风险投资基金(PE/VC)支持的公司的财务政策。我们的样本包括1991年1月至2000年12月之间完成首次公开募股的公司。我们的假设与风险投资和非风险投资支持的公司在财务政策和持久性方面的差异有关。我们使用四个指标来评估公司的财务政策:1)现金持有量;(二)杠杆;(三)从收益中提取股息;四是利息覆盖。为了检验这四个假设,我们运行Pooled OLS回归。结果表明,风投支持的公司比非风投支持的公司持有更高的现金。这种影响在IPO后至少持续8年。我们发现,风投支持的公司在IPO后的前8年里,杠杆水平较低。不同的是,尽管在IPO后的头几年,利息覆盖率较低,但业绩并不持久,甚至在随后的几年里还会出现倒退。最后,我们没有发现风险投资和非风险投资支持的公司在股息收益比率上存在显著差异的统计证据。我们的结果在统计方法和不同的方法中都是稳健的。
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来源期刊
CiteScore
0.30
自引率
1.90%
发文量
14
审稿时长
12 weeks
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