Foreign Business Activities, Foreignness of the VC Syndicate, and IPO Value

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dc.contributor.authorChahine, Salim
dc.contributor.authorSaade, Samer
dc.contributor.authorGoergen, Marc
dc.contributor.departmentOSB
dc.contributor.facultySuliman S. Olayan School of Business (OSB)
dc.contributor.institutionAmerican University of Beirut
dc.date.accessioned2025-01-24T12:15:34Z
dc.date.available2025-01-24T12:15:34Z
dc.date.issued2019
dc.description.abstractThis article examines the role played by foreign venture capital (VC) firms in U.S. initial public offerings (IPOs). We find that U.S. VC–backed IPOs benefit from the foreignness of the VC syndicate. Specifically, jointly with domestic VC firms, foreign VC firms certify the quality of their portfolio companies at the time of the IPO, which increases their IPO premium. Foreign VC firms also play an advisory role, enhancing the foreign business activities of their U.S. investees, thereby increasing the IPO premium. Finally, value added by foreign VC firms is greater through their monitoring role if they originate from countries where the investee has foreign business activities. © The Author(s) 2019.
dc.identifier.doihttps://doi.org/10.1177/1042258718757503
dc.identifier.eid2-s2.0-85056296978
dc.identifier.urihttp://hdl.handle.net/10938/33375
dc.language.isoen
dc.publisherSAGE Publications Ltd
dc.relation.ispartofEntrepreneurship: Theory and Practice
dc.sourceScopus
dc.subjectAdvice giving
dc.subjectCertification
dc.subjectForeign business activities
dc.subjectForeignness of the vc syndicate
dc.subjectInitial public offerings
dc.subjectInternational presence
dc.subjectMonitoring
dc.subjectVenture capital
dc.titleForeign Business Activities, Foreignness of the VC Syndicate, and IPO Value
dc.typeArticle

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