Earticle

초록

영어

This study analyzes the stock market reaction to share sale announcements made by venture capital firms (VCs) and tests the monitoring role of VCs on publicly listed companies. We hypothesize that the divestment of shares by a VC signals the termination of its monitoring function, thereby inducing a negative market response. This effect is anticipated to be more pronounced when the divesting VC possesses stronger incentives to monitor the portfolio company. This study employs the ownership stakes and board representation of VCs as proxy variables for monitoring incentives. Analyzing 298 disclosures of share sales by VCs in the KOSDAQ market from 2010 to 2022, this study finds the following. First, a statistically significant negative cumulative abnormal return is observed from the disclosure date to five days afterward. Second, univariate analyses of subsamples indicate that the negative market reaction is more pronounced when the VC holds a larger ownership stake or a board seat. Third, regression analyses controlling for firm and VC characteristics confirm a negative correlation between the VC’s monitoring incentives and post-disclosure cumulative abnormal return, providing support for the monitoring hypothesis.

목차

Abstract
Ⅰ. Introduction
Ⅱ. Literature Review and Hypothesis Development
1. Monitoring Role of Venture Capital
2. Korean Venture Capital Industry and Hypothesis Development
Ⅲ. Research Design
1. Sample Selection
2. Variable Construction
Ⅳ. Empirical Analysis Results
1. The Speed of VC Exit
2. Venture Capital Sale Disclosures and Stock Price Reactions
3. Stock Price Reaction Subsample Analysis
4. Regression Analysis Results
5. Additional Test
Ⅴ. Conclusion
References

키워드

저자

• Yoon-Chae Kim [ Sogang Business School, Sogang University, South Korea ]
• Youngjoo Lee [ Sogang Business School, Sogang University, South Korea ] Corresponding Author

참고문헌

발행기관

간행물

표지보기 관심저널 등록

• 간행물명

  재무연구 [Asian Review of Financial Research]

• 간기

  계간

• pISSN

  1229-0351

• eISSN

  2713-6531

• 수록기간

  1988~2026

• 등재여부

  KCI 등재,SCOPUS

• 십진분류

  KDC 325 DDC 330