Masulis, Ronald W.; Nahata, Rajarishi - In: Journal of Financial and Quantitative Analysis 46 (2011) 02, pp. 395-430
We analyze the effects of venture capital (VC) backing on profitability of private firm acquisitions. We find that VC backing leads to significantly higher acquirer announcement returns, averaging 3%, even after controlling for deal characteristics and endogeneity of venture funding. This leads...