Events

IFin Seminar, Gordon Phillips, Tuck School of Business at Dartmouth - "Venture Capital Investments and Merger and Acquisition Activity around the World"

Institute of Finance

Date: / -

Seminar Title: Venture Capital Investments and Merger and Acquisition Activity around the World

 

Gordon Phillips, Tuck School of Business at Dartmouth

12:25 - 13:40

Auditorium (main building, 3rd level)

Lugano Campus

 

Abstract

We examine the relation between venture capital (VC) investments and merger and acquisition (M&A) activity in 48 countries around the world. We find evidence of a strong positive association between VC investments and lagged M&A activity, consistent with the hypothesis that an active M&A market provides viable exit opportunities for VC companies and therefore incentivizes them to engage in more deals. We also explore the effects of country-level pro-takeover legislation passed internationally (positive shocks), and U.S. state-level antitakeover business combination laws (negative shocks), on VC activity. We find significant post-law changes in VC activity. VC activity intensifies after enactment of country-level takeover friendly legislation and decreases following passage of state antitakeover laws in the U.S.

 

Faculties