Analysts' Earnings Forecasts for VC and Non-VC backed IPOs

• Main Authors: Shiang-Ting Fan, 范湘婷
• Other Authors: Woan Lih Liang
• Format: Others
• Language: en_US
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/25769866814348498539

碩士 === 元智大學 === 財務金融學程 === 99 === We examine whether venture capital (VC) backed firms have superior performance to non-venture capital (Non-VC) backed firms from the analysts’ view. By using analysts’ earning forecast revisions, we find that analysts would downward revise their forecast earnings for VC and Non-VC backed IPOs after six months of initial public offering (IPO) date. The downward revision is significantly larger for VC backed IPOs than Non-VC backed IPOs. In additional, we find analysts’ earnings forecasts are optimistic for IPOs, especially for VC backed IPOs within half a year after IPO. The forecasts for VC backed IPOs are less accurate. Finally, we adopt the cross-sectional regression of analyst coverage and find VC backed IPOs would attract more analyst following.