Abstract
We explore the link between third-party certification (venture capital backing, analyst following and having a top underwriter), and post-IPO acquisition activity through the reduction in valuation uncertainty channel. In a sample of 2,424 U.S. IPOs, we find that third-party certification facilitates post-IPO acquisitions. The certified firms are both more likely and conduct acquisitions sooner after the IPO. Our results support the notion that third-party certification reduces post-IPO valuation uncertainty and thereby facilitates a more efficient acquisition strategy.
| Original language | English |
|---|---|
| Peer-reviewed scientific journal | Applied Economics |
| Volume | 52 |
| Issue number | 31 |
| Pages (from-to) | 3436-3447 |
| Number of pages | 12 |
| ISSN | 0003-6846 |
| DOIs | |
| Publication status | Published - 07.01.2020 |
| MoE publication type | A1 Journal article - refereed |
Keywords
- 512 Business and Management
- Corporate Investment
- M&A
- IPO
- Third-party certification
- Valuation uncertainty
Areas of Strength and Areas of High Potential (AoS and AoHP)
- AoS: Financial management, accounting, and governance
