Relationship between finance and firm growth under low growth economy: cross-disciplinary study on private and public firms

2015 Fiscal Year Final Research Report

• Project/Area Number: 24330102
• Research Category: Grant-in-Aid for Scientific Research (B)
• Allocation Type: Partial Multi-year Fund
• Section: 一般
• Research Field: Public finance/Monetary economics
• Research Institution: Kobe University
• Principal Investigator: KUTSUNA Kenji 神戸大学, 経営学研究科, 教授 (00275273)
• Project Period (FY): 2012-04-01 – 2016-03-31
• Keywords: アントレプレナーファイナンス / ベンチャーキャピタル / マーケットメイキング / 優先株 / 高度成長企業 / IPO / ファミリービジネス

Outline of Final Research Achievements

First, I found that there is no clear relationship between the certification effects of venture capital firm’s reputation and IPO firm’s performance. Second, I used the IPOs of supply-chain partners as precipitating events and tested for positive spillovers on private firms. I found that private suppliers and customers experience significantly higher rates of growth in revenue, cash balance, and PP&E than do other private firms. Third, I provided evidence that overallotment option provisions benefit both issuers and underwriters. I estimated that OAO provisions lead to lower underwriting fees, less underpricing, less negative post-IPO performance, lower post-IPO volatility and larger IPOs. Forth, I found that the market maker method was mainly attractive to the least liquid firms. Two-thirds of IPO firms initially choose the auction method and many others switched to auction later on. Paradoxically, abnormal returns for firms switching to auction are significantly positive.

Free Research Field

ファイナンス