Detailed Information
Cited 0 time in 
Cited 0 time in 
Cited 0 time in
Metadata Downloads
The role of venture capitalist monitoring in mitigating cost stickiness: Evidence from Korea's IPO market
- Authors
- Yang, Daecheon; Koo, J.-H.; Kim, J.
- Issue Date
- Mar-2023
- Publisher
- Elsevier Ltd
- Keywords
- Cost stickiness; Empire-building preferences; Initial public offering; Managerial optimism; Venture capitalist
- Citation
- Finance Research Letters, v.52
- Journal Title
- Finance Research Letters
- Volume
- 52
- ISSN
- 1544-6123
1544-6131
- Abstract
- This study investigates the monitoring role of venture capitalists in mitigating the degree of cost stickiness, which may stem from optimistic issuers intoxicated by the prosperous environment surrounding IPOs. In Korea's KOSDAQ market, we find that an issuing company managed by optimistic issuers is affected by cost stickiness after the offering. However, this cost stickiness decreases with the presence and the percentage ownership of long-term VCs. Our findings imply the role of VC monitoring in restraining issuers’ suboptimal decisions in an emerging IPO market. © 2022 Elsevier Inc.
- Files in This Item
- There are no files associated with this item.
Items in ScholarWorks are protected by copyright, with all rights reserved, unless otherwise indicated.