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We analyze the disinvestment decision of venture capitalists in the course of the initial public offering (IPO) of their portfolio firms. Due to informational asymmetries, the capital market learns of the project quality only in the period following the IPO. Venture capitalists with high-quality...
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We analyze the desinvestment decision of venture capitalists in the course of an IPO of their portfolio firms. The capital market learns of the project quality only in the period following the IPO. Venture capitalists with high-quality firms face a trade-off between immediately selling their...
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