| As the primary market equity investors,venture capital investors have enough motivation to fully exit in the invested corporate post initial public offering.However,in practice venture capital investors do not always exit fully at the IPO date.In recent years,plenty of listed companies’ performance declines significantly.These issues motivate my research agenda.I focus on investigating venture capital investors’ post-IPO presence in firms,their effect on the long-run performance.It is of great importance to academics,practitioners and other market participants to understand why these investors carry on investing in firms they brought to the market and whether such holdings create or destroy value.The main conclusion of this paper is as follow:(1)the more shares venture capital investors hold in the first place,the less likely they are to choose full exit,and the longer the holding time will be;(2)joint investors are more likely to continue to invest within the first year after IPO luck-up day,and the length of the overall investment will be longer;(3)the state-backed venture investors tend to choose partial exit;(4)high-tech enterprises are more easily to quit in the early stage,and the overall hold time is shorter;(5)the reputation of venture investors and market volatility’s doesn’t influence exit;(6)the greater proportion of shares that venture investors exit within 1 year after lock-up day,the worse the enterprise performance will be. |
