Dear students, faculty and staff,
Nazarbayev University Graduate School of Business invites you to Lunch-time Research Seminar
“VENTURE CAPITAL AND THE GOING PUBLIC PROCESS: EVIDENCE FROM CHINA”
by David Robinson
WHEN: Friday, November 13th, 16.30
WHERE: Block C-3/new GSB/GSPP Building, 1st floor, Room 1.010
What we do in this paper?
— Develop a complete picture of IPOs in China since the inception of the Shenzhen and Shanghai exchanges, including the extent to which VC backing is involved.
— Ask a simple question: what is the role of VCs in the going public process in China?
— Or the Steve Kaplan version: should we call these guys VCs or not?
— Draw on classic papers analyzing the role of VCs in the IPO process and see how the stylized facts translate to the Chinese Context
> I Underpricing
> I Underperformance
> I Its role in firm development
— Test explanations for patterns we see
> Liquidity Provision
> Market Timing
> Speculative Motives
> About 2,500 IPOs since 1990; 60% are in the manufacturing sector
> About 680 are VC-backed, a mix of state-owned, private, and foreign VCs
— Stylized facts: How are VC-backed IPOs different?
> Short run: VC investment associated with more underpricing
> Short run: This is a market timing result. Less underpricing conditional on market timing.
> Long run: VC investment associated with less underperformance
— New tests: How do liquidity regime changes affect VC investment?
> Increasing liquidity shortens holding periods
> No evidence that liquidity alleviates financial dependence
David T. Robinson is a Professor of Finance and the J. Rex Fuqua Distinguished Professor of International Management at Duke University’s Fuqua School of Business, and a Research Associate at the National Bureau of Economic Research. He is an internationally recognized expert in the fields of private equity, venture capital and entrepreneurial finance. His work has appeared in leading academic journals in finance and economics and has been featured in the New York Times, The Wall Street Journal,
The Financial Times, and The Economist.
Professor Robinson also serves on the World Economic Forum’s Global Agenda Council on Finance and Capital, and is a scientific advisor to the Swedish House of Finance in Stockholm, Sweden, the Private Equity Research Council, the Private Capital Research Institute, as well as a number of private equity firms and technology startups.
He earned his PhD and MBA degrees at the University of Chicago, a Master of Science
from the London School of Economics, and a Bachelor of Arts from the University of North Carolina at Chapel Hill. Prior to joining Duke University he was a Professor of Finance and Economics at Columbia University.