Publication Type

Master Thesis

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

Share

COinS