Guo,Lev and Zhou (2005)find that several factors play an important role in the success of a venture capital.How much of the IPO pricing can these factors explain?

A) $ 10-14 \% $
B) $ 20-30 \% $
C) $ 60-80 \% $
D) $ 85-90 \% $

Question

Guo,Lev and Zhou (2005)find that several factors play an important role in the success of a venture capital.How much of the IPO pricing can these factors explain?

A) $ 10-14 \% $
B) $ 20-30 \% $
C) $ 60-80 \% $
D) $ 85-90 \% $

Quizplus · Accepted Answer

In this sense,venture capitalists can play an important role in the business success through reputational signalling.Guo,Lev and Zhou (2005)examine factors associated with biotech IPOs.They find that the quality of the underwriters and venture capital backing,as well as product-related and intellectual property fundamentals,can explain around 60-80% of the pricing of the IPO.

Guo,Lev and Zhou (2005)find That Several Factors Play an Important 10−14% 10-14 \% 10−14%

Guo,Lev and Zhou (2005)find That Several Factors Play an Important $10-14 \%$