USF St. Petersburg campus Faculty Publications
Employee equity incentives and venture capitalist involvement : Examining the effects on IPO performance.
Document Type
Article
Publication Date
2008
Abstract
We examine the effects of venture capitalist involvement and equity incentives for all employees on the performance of initial public offering firms . Data was collected from 402 IPO firms, representing 242 non-VC backed and 160 VC backed firms. Results indicate venture capitalists positively influence the likelihood the portfolio firm will offer equity incentives to all employees. Consistent with the agency theory argument that monitoring and incentives can behave as complements to one another, the results suggest venture capitalist backing and incentive stock options for all employees operate in concert to have a positive effect on stock price performance three years after the initial public offering.
Language
en_US
Publisher
Norfolk State University
Recommended Citation
Westerman, J. W., Geiger, S. W., & Cyr, L. A. (2008). Employee equity incentives and venture capitalist involvement : Examining the effects on IPO performance. Journal of Developmental Entrepreneurship, 13(4), 409-423.
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.
Comments
Abstract only. Full-text article is available only through licensed access provided by the publisher. Published in Journal of Developmental Entrepreneurship, 13(4), 409-423. Members of the USF System may access the full-text of the article through the authenticated link provided.