Do Venture Capitalists Add Value To Small Manufacturing Firms? An Empirical Analysis of Venture and Non-Venture Capital Backed Initial Public Offerings

Authors

Richard Brown, Brigham Young University
Dr. James C. Brau, Brigham Young University

Keywords

venture capitalists, manufacturing firms, public offerings, venture capital funding

College

Marriott School of Management

Department

Management

Abstract

Venture capital funding of young and high-risk companies is a topic of great interest to both finance practitioners and researchers. A venture capitalist gives funds to privately held companies in hopes of earning a high return on the investment. Venture capitalists also provide more than money: they are viewed as sources of expert advice, both in the industry that the new firm is in, and in the various stages of developing a company. In return for their services, venture capitalists receive equity positions in the monitored firm that potentially offer enormous monetary rewards.

Recommended Citation

Brown, Richard and Brau, Dr. James C. (2014) "Do Venture Capitalists Add Value To Small Manufacturing Firms? An Empirical Analysis of Venture and Non-Venture Capital Backed Initial Public Offerings," Journal of Undergraduate Research: Vol. 2014: Iss. 1, Article 1010.
Available at: https://scholarsarchive.byu.edu/jur/vol2014/iss1/1010