1. Nguyen, G., & Vu, L. (2020). Does Venture Capital Syndication affect Mergers and Acquisitions, Journal of Corporate Finance, Forthcoming. Link
2. Nguyen, G., & Nguyen, H. (2019). Does seller status matter in inter-corporate asset sales, Journal of Banking & Finance, 100, pp. 97-110. Link
1. Venture Capital and Method of payment in Mergers and Acquisitions with Hung Pham, under revision at Management Science. Link
We document that Venture Capital (VC)-backed targets accept more stock in mergers and acquisitions than non-VC-backed targets, even after controlling for self-selection bias, characteristic differences between transactions of VC-backed and non-VC-backed targets, and VC information bridge-building. VC-backed targets prefer the stock of acquirers that are small, young, risky, or have a large capital investment. They also hold more stock when they are backed by independent VCs, reputable VCs, VC syndicates, or VCs that have a low average fund maturity. In addition, we find that the acquirer’s short-term and long-term performance is improved when VC-backed targets choose stock as the method of payment. Overall, the evidence suggests that VCs strategically hold the shares of acquirers that meet their investment preferences, and improve the acquirers’ performance.
2. The Impact of Jobs Act on Venture Capital Investments with Jo-Ann Suchard. Link
Do changes in the IPO regulatory environment affect venture capital (VC) investments in entrepreneurial firms? Using the Jumpstart Our Business Startup Act (JOBS Act) as an exogenous shock to the firms’ access to the IPO market, we show that the JOBS Act positively increase VC investments in the U.S. After the Act, firms are more likely to exit through IPO. They choose IPO rather than acquisition as their exit pathway and shorten the time to IPO. We also document evidence consistent with the reduced IPO disclosure requirements. Firms operating in biopharmaceutical and high-tech industries with large disclosure costs tend to obtain VC investments in the post-JOBS period. VC investors adjust their investment strategies in response to the Act. They are unlikely to syndicate with other VCs and provide staged financing. They disclose less information on firm valuation and target more mature firms after the Act.
3. Product Market Competition, Venture Capital and the Success of Entrepreneurial Firms with Douglas Cumming and My Nguyen.
4. Asset Liquidity and Venture Capital Financing with Vinh Vo, submitted to Journal of Corporate Finance.