Research on Disposition Effect of Venture Capital
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| Title | Research on Disposition Effect of Venture Capital
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| Author | Luo Wei, Yu Yan and Zhou Xiaosong |
| Organization | Guanghua School of Management, Peking University;Business School, Beijing Technology and Business University;China National Complete Plant Import & Export Corporation (Group) |
| Email | luowei@gsm.pku.edu.cn;yuyan@btbu.edu.cn;zhouxiaosong.01@163.com |
| Key Words | Venture capital; disposition effect; information asymmetry; investment experience |
| Abstract | This paper examines the existence of disposition effect in post-IPO exiting stage of venture capital. We find that if post-lockup stock price is lower than reference point price such as offer price and first-day price, venture capitalists tend to hold their shares in an IPO firm and are reluctant to sell off. Further analysis shows that locating in the same region with the IPO firm and long holding period before the IPO mitigate the influence of disposition effect. Experienced venture capitalists and foreign venture capitalists are affected less by the disposition effect. |
| Serial Number | WP1026 |
| Time | 2016-02-02 |
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