Browsing by Author "Saade, Samer"

Now showing 1 - 2 of 2
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    Foreign Business Activities, Foreignness of the VC Syndicate, and IPO Value
    (SAGE Journals, 2018-09) Goergen, Marc; Chahine, Salim; Saade, Samer; https://ror.org/02jjdwm75
    This paper examines the role played by foreign venture capital (VC) firms in US initial public offerings (IPOs). We find that US VC-backed IPOs benefit from the foreignness of the VC syndicate. Specifically, jointly with domestic VC firms foreign VC firms certify the quality of their portfolio companies at the time of the IPO, which increases their IPO premium. Foreign VC firms also play an advisory role, enhancing the foreign business activities of their US investees, thereby increasing the IPO premium. Finally, value added by foreign VC firms is greater through their monitoring role if they originate from countries where the investee has foreign business activities.
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    Publication
    Foreign Venture Capitalists and Access to Foreign Research: The Case of US Initial Public Offerings
    (Wiley, 2022-01) Goergen, Marc; Saade, Samer; Chahine, Salim; https://ror.org/02jjdwm75
    We investigate whether foreign venture capital (VC) firms create value above and beyond the value created by domestic VC firms in US initial public offering (IPO) firms. Contributing to an emerging literature on the role and effects of foreign VC firms, we study whether such VC firms enhance innovation by their investee firms. While high levels of innovation are a prerequisite for future value creation, as well as for maintaining the firm's competitive advantage, the extant literature nevertheless suggests that investors struggle with valuing innovation input when firms are about to go public. Ultimately, this results in greater rather than lower IPO underpricing. We argue that foreign VC firms, especially those from countries with high patent activity, increase the innovation levels of their investee firms. In turn, their presence in the VC syndicate signals the greater likelihood of the investee firm successfully turning innovation input (i.e. research and development (R&D) expenditures) into innovation output (i.e. patents), resulting in lower IPO underpricing. Studying a sample of 995 US IPOs conducted during 2000–2016, we find strong and consistent support for the above arguments.