Venture Capital Investments and Merger and Acquisition Activity Around the World / Gordon M. Phillips, Alexei Zhdanov.

Format:

Book

Author/Creator:

Phillips, Gordon M.

Contributor:

National Bureau of Economic Research.

Zhdanov, Alexei.

Series:

Working Paper Series (National Bureau of Economic Research) no. w24082.

NBER working paper series no. w24082

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2017.

Summary:

We examine the relation between venture capital (VC) investments and mergers and acquisitions (M&A) activity around the world. We find evidence of a strong positive association between VC investments and lagged M&A activity, consistent with the hypothesis that an active M&A market provides viable exit opportunities for VC companies and therefore incentivizes them to engage in more deals. We also explore the effects of country-level pro-takeover legislation passed internationally (positive shocks), and US state-level antitakeover business combination laws (negative shocks), on VC activity. We find significant post-law changes in VC activity. VC activity intensifies after enactment of country-level takeover friendly legislation and decreases following passage of state antitakeover laws in the U.S.

Notes:

Print version record

November 2017.