THE CERTIFYING ROLE OF PRIVATE EQUITY AND VENTURE CAPITAL FUNDS IN THE QUALITY OF COMPANIES NEWCOMERS ON BM&FBOVESPA
This study verified, from the perspective of the signaling theory, the certifying role of Private Equity and Venture Capital funds in the quality of companies that are newcomers on BM&FBovespa (IPOs). Therefore, an event study was proposed to verify the existence of cumulative abnormal returns (...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Conselho Federal de Contabilidade (CFC)
2014-09-01
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| Series: | Revista de Educação e Pesquisa em Contabilidade |
| Subjects: | |
| Online Access: | http://repec.org.br/index.php/repec/article/view/1034 |
| _version_ | 1818057025206091776 |
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| author | Carlos Testa Gerlando Augusto Sampaio Franco de Lima |
| author_facet | Carlos Testa Gerlando Augusto Sampaio Franco de Lima |
| author_sort | Carlos Testa |
| collection | DOAJ |
| description | This study verified, from the perspective of the signaling theory, the certifying role of Private Equity and Venture Capital funds in the quality of companies that are newcomers on BM&FBovespa (IPOs). Therefore, an event study was proposed to verify the existence of cumulative abnormal returns (proxy for IPO quality) in investments portfolios of stocks from the IPOs launched on BM&FBovespa between January 2004 and December 2007. The research hypotheses were verified by means of three distinct procedures: test of means, CAPM and CAR regressions. It was verified that companies that received contributions from Private Equity and Venture Capital showed statistically higher mean cumulative abnormal returns than companies without investments. The regression results indicate that, the greater the participation of PE/VC funds, the better the IPOs’ long-term performance. The evidence found suggest that the presence of PE/VC funds in the companies that were newcomers on BM&FBovespa has a positive effect on the cumulative abnormal returns of the IPOs. |
| first_indexed | 2024-12-10T12:38:10Z |
| format | Article |
| id | doaj.art-c732ccb67615442982571d1fb7b84f79 |
| institution | Directory Open Access Journal |
| issn | 1981-8610 |
| language | English |
| last_indexed | 2024-12-10T12:38:10Z |
| publishDate | 2014-09-01 |
| publisher | Conselho Federal de Contabilidade (CFC) |
| record_format | Article |
| series | Revista de Educação e Pesquisa em Contabilidade |
| spelling | doaj.art-c732ccb67615442982571d1fb7b84f792022-12-22T01:48:36ZengConselho Federal de Contabilidade (CFC)Revista de Educação e Pesquisa em Contabilidade1981-86102014-09-018310.17524/repec.v8i3.1034627THE CERTIFYING ROLE OF PRIVATE EQUITY AND VENTURE CAPITAL FUNDS IN THE QUALITY OF COMPANIES NEWCOMERS ON BM&FBOVESPACarlos Testa0Gerlando Augusto Sampaio Franco de Lima1Analista de Private Equity, Caixa Econômica FederalProfessor Associado da Universidade de São PauloThis study verified, from the perspective of the signaling theory, the certifying role of Private Equity and Venture Capital funds in the quality of companies that are newcomers on BM&FBovespa (IPOs). Therefore, an event study was proposed to verify the existence of cumulative abnormal returns (proxy for IPO quality) in investments portfolios of stocks from the IPOs launched on BM&FBovespa between January 2004 and December 2007. The research hypotheses were verified by means of three distinct procedures: test of means, CAPM and CAR regressions. It was verified that companies that received contributions from Private Equity and Venture Capital showed statistically higher mean cumulative abnormal returns than companies without investments. The regression results indicate that, the greater the participation of PE/VC funds, the better the IPOs’ long-term performance. The evidence found suggest that the presence of PE/VC funds in the companies that were newcomers on BM&FBovespa has a positive effect on the cumulative abnormal returns of the IPOs.http://repec.org.br/index.php/repec/article/view/1034InvestimentosPrivate equityVenture capitalBovespaOferta pública inicial. |
| spellingShingle | Carlos Testa Gerlando Augusto Sampaio Franco de Lima THE CERTIFYING ROLE OF PRIVATE EQUITY AND VENTURE CAPITAL FUNDS IN THE QUALITY OF COMPANIES NEWCOMERS ON BM&FBOVESPA Revista de Educação e Pesquisa em Contabilidade Investimentos Private equity Venture capital Bovespa Oferta pública inicial. |
| title | THE CERTIFYING ROLE OF PRIVATE EQUITY AND VENTURE CAPITAL FUNDS IN THE QUALITY OF COMPANIES NEWCOMERS ON BM&FBOVESPA |
| title_full | THE CERTIFYING ROLE OF PRIVATE EQUITY AND VENTURE CAPITAL FUNDS IN THE QUALITY OF COMPANIES NEWCOMERS ON BM&FBOVESPA |
| title_fullStr | THE CERTIFYING ROLE OF PRIVATE EQUITY AND VENTURE CAPITAL FUNDS IN THE QUALITY OF COMPANIES NEWCOMERS ON BM&FBOVESPA |
| title_full_unstemmed | THE CERTIFYING ROLE OF PRIVATE EQUITY AND VENTURE CAPITAL FUNDS IN THE QUALITY OF COMPANIES NEWCOMERS ON BM&FBOVESPA |
| title_short | THE CERTIFYING ROLE OF PRIVATE EQUITY AND VENTURE CAPITAL FUNDS IN THE QUALITY OF COMPANIES NEWCOMERS ON BM&FBOVESPA |
| title_sort | certifying role of private equity and venture capital funds in the quality of companies newcomers on bm fbovespa |
| topic | Investimentos Private equity Venture capital Bovespa Oferta pública inicial. |
| url | http://repec.org.br/index.php/repec/article/view/1034 |
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