Abnormal Return From Venture Capitalist’s Selling And Reason Of Selling

This study investigates the venture capital’s selling behavior using the discloseddata of companies going public on the growth enterprises market from2009to2010andchoose2009-2011as the study duration. This study tries to describe the change ofcumulative abnormal return around the venture capital’s selling events and to findfactors influencing whether and by how much venture capital selling through regression.The study finds that the cumulative abnormal return rises and reaches the peak beforethe selling events, and falls after the events which make venture capitals gain abnormalreturn. And venture capitals, which only want to sell stocks at a high price, trend to sellstocks which have higher valuation. And the selling is not a negative signal of futureperformance, but an action led by a strong speculation desire.