Publication Type
Master Thesis
Version
publishedVersion
Publication Date
2009
Abstract
Instead of perceiving lockup agreement and VC-backing as exogenous variables, this paper employs the VC-backed IPO data and takes a closer examination on the specific effect of VC reputation, which impacts the choice of lockup length and return and volume abnormality around lockup expiry. Contrary to the commitment hypothesis proposed by previous literatures, the data suggests that less VC-backed companies tend to choose a longer lockup agreement as a compensation device and those companies backed by more reputable VC experience less negative abnormal return and less abnormal volume around lockup expiry.
Keywords
Abnormal return and volume, Lockup agreement, VC reputation
Degree Awarded
MSc in Finance
Discipline
Finance and Financial Management | Portfolio and Security Analysis
Supervisor(s)
GOH, Jeremy
Publisher
Singapore Management University
City or Country
Singapore
Citation
HE, Kejia.
Does VC Reputation Affect Function of Lockup Agreement?. (2009).
Available at: https://ink.library.smu.edu.sg/etd_coll/11
Copyright Owner and License
Author
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.