资本市场法律和首次公开发行对风险投资的影响

1、文献The influence of capital market laws and initial public offering (IPO) process on venture capital European Journal of Operational ResearchVolume 192, Issue 1, 1 January 2009, Pages 293-301 Jarunee WonglimpiyaratThe National Science and Technology Development Agency, Ministry of Science and Technol

2、ogy, 111 Thailand Science Park, Paholyothin Road, Klong 1, Klong Luang, Pathumthani 12120, ThailandAbstractThis paper is concerned with the influence of capital market laws and initial public offering (IPO) process on venture capital. It discusses the impact of US federal state laws and Securities a

3、nd Exchange Commission (SEC) regulations to the venture capital markets, arguing if the rules and regulatories are burdensome to entrepreneurs and new-growth businesses. The impact of Sarbanes-Oxley Act and the future Investment Act on venture capital funds and entrepreneurial companies going public

4、 are also discussed. The paper proposes the model of venture capital financing describing the process from fund raising to investment exits, the linkages of the venture capital market to the financial/capital markets and the related capital market laws. The policy implications on SEC regulations ess

5、ential to the development of venture capital industry are suggested.Keywords: capital market；Securities；entrepreneurship; regulated industries;law1.1. The relation of venture capital funding and the capital marketVenture capital (VC) is a high-risk, potentially high-return investment to support busi

6、ness creation and growth. It is a source of funds that typically finance new and rapidly growing companies through equity participation (Bygrave and Timmons, 1992 W.D. Bygrave and J.A. Timmons, Venture Capital at the Crossroads, Harvard Business School Press, Boston, MA (1992).Bygrave and Timmons, 1

7、992 and Gompers and Lerner, 2001). In other words, VC is pre-IPO equity capital provided by professional investors. The concept of modern venture capital is defined by Megginson (2002) as a professionally managed pool of money raised for the purpose of making equity investments in growing private co

8、mpanies with a well defined exit strategy. Venture capital markets are of particular interest to policy makers since this type of financing is used to fund Hi-Tech companies with the high growth potential in order to draw investments into the local economy.Given that innovations often follow a life

9、cycle, Fig. 1 shows the funding requirement linked to the stages of the innovation process in the life cycle. At the seed, start-up and early stages, the entrepreneurial firms are generally funded by families and venture capitalists. Some venture capitalists focus on later-stage investment to help t

10、he companies grow to a critical mass to attract public financing through a stock offering. Through these investments, investors generally acquire an equity and/or security that can be convertible into equity in the target company. One of the key factors cited in the success of venture capital market

11、s in the US has been the presence of a viable exit method (Black and Gilson, 1998). The development of capital markets e.g. NASDAQ, Regional Stock Markets, New York Stock Exchange (NYSE), American Stock Exchange (AMEX) plays an important role in the success of venture capital markets in the US, give

12、n that initial public offerings (IPOs) offer a quick exit for the investor. The study of factors determining the growth and development of venture capital markets carried out by Jeng and Wells (2000), based on statistics from 21 countries, concludes that the growth of venture capital markets is infl

13、uenced by size and liquidity of a nations stock markets. In the venture capital industry, bringing a company public is a signal of success for the venture capital fund backing the issuing company (Gompers, 1998, Gompers and Lerner, 1998, Gompers and Lerner, 1999, Gompers and Lerner, 2001, Black and

14、Gilson, 1998, Jeng and Wells, 2000, Lerner, 1999, Lerner, 2002, Barnes et al., 2003 and Hellmann, 2000).Initial public offerings (IPOs) are seen by investors as the best exit mechanism to obtain a return. According to the conventional financial theory, the return required by a rational investor is i

15、nfluenced by the risk of the investment project and the return on less risky investment alternatives. IPO seems to be the most attractive option to liquidate an investment as valuations can be highest in a liquid stock market. However, the market for venture capital investments is far from perfect m

16、arket (Brealey and Myers, 1996, Wright and Robbie, 1998 and Black and Gilson, 1998). Most venture capitalists and investors are risk averse. They see that the major risk is the risk of not getting their money back from an investment and therefore prefer to invest in profitable businesses. Fig. 2 sho

17、ws the two sets of indifference curves slope upward to reflect the E(r) preferences of the two different risk averse venture capitalists. Underlying portfolio theory, all combinations of risk, , and return, E(r), along an indifference curve gives the venture capitalists the same level of satisfactio

18、n. Since new entrepreneurial companies are risky prospects, the venture capitalists will demand higher rates of return (risk premium) for making investments (Makens, 2004 and Bodie et al., 2005). However, the high yield requirements are frequently incompatible with the growth potential of the prepon

19、derance of small issuers. Fig. 2. Analysis of risk and return for the venture capitalists.The venture capital firms generally manage several pools of funds and invest in a broad range of industries. The means to make a profitable exit is to register with SEC so that the venture capitalists can

20、sell all their holding shares in the capital market. For the VC-backed companies going public, they have to comply with the federal laws and the laws of the state in which the securities are to be offered and sold. 1.2. Laws and regulations concerning the venture capital fundThe venture capital mark

21、ets are influenced by a countrys legal and institutional structure. Legal and regulatory variables affect VC investment in terms of supply and demand of venture capital finance (Cumming et al., 2005, Kanniainen and Keuschnigg, 2003a, Kanniainen and Keuschnigg, 2003b, Keuschnigg, 2002, Keuschnigg, 20

22、03, Keuschnigg and Nielsen, 2001, Keuschnigg and Nielsen, 2003, Keuschnigg and Nielsen, 2004 and Armour, 2003). The role of the US Government in the development of venture capital can be seen, for example, in the cases of the Small Business Investment Corporations (SBICs) legislation in 1958 to enco

23、urage investment in small businesses; the Revenue Act of 1978 and the 1981 Economic Recovery Tax Act to reduce the capital gains tax rates in order to encourage venture capital investment; the Employee Retirement Income Security Act (ERISA) of 1974 to allow pension funds to invest in private equity

24、(Bygrave and Timmons, 1992, Gompers and Lerner, 1998 and Lerner, 1999).In the US, the stock exchanges are registered with and regulated by the SEC. The SEC is a regulatory agency created by the Congress in 1934. The role of SEC is to ensure that the investment companies, public companies and other p

25、articipants in the securities markets comply with federal securities laws. According to the study by Gompers and Lerner (1995), over 80% of venture capital funds are organised as limited partnerships. Venture capitalists tend to liquidate their investments within 710 years. Although IPO is considere

26、d to be the most attractive option for the entrepreneurial companies to liquidate an investment (Sahlman, 1990 and James, 1994), the public investments in their stocks are quite risky. This is because the entrepreneurial companies do not have established track record to show their performance. Their

27、 stocks tend to be traded in low volumes (low market capitalisation) and underperform the market, thereby increasing the riskiness of the portfolio. The SEC has toughened its rules in attempts to protect public investors in the securities markets. The companies trading on the Stock Market are requir

28、ed to register under the Securities Act of 1933 and the Securities Exchange Act of 1934. They must file various other classes of financial data and information with government bodies.There is a close relationship between IPO and venture capital since IPO is an exit for entrepreneurial ventures and i

29、nvestors. When a VC-backed company decides to issue securities to the public, the company will offer the securities through an IPO. In the US, small entrepreneurial companies often seek a public market for their stock on the NASDAQ stock market (Bannock, 1994, Black and Gilson, 1998 and Tykvová

30、 and Walz, 2007).By bringing companies public, the venture capitalists could establish a reputation and raise capital for new funds (Gompers, 1996 and Gompers and Lerner, 1999). However, they also face the regulatory pressures as financial regulators become more involved in the efficiency of the sec

31、urities industry. In order to sell securities in the capital market, they must register the securities offering with applicable authorities, or an exemption from registration must be found. Although IPOs represent the best means for initial investors to obtain a return, they are costly. Rushing the

32、companies to IPO would impose heightened costs on the issuers.2 Venture capital industry and SECs role in regulating the capital marketIn the venture capital industry, the entrepreneur is the owner of the VC share. Venture capitalists liquidate their portfolio company investments by bringing venture

33、-backed companies to public. Fig. 5 presents the model of venture capital financing describing the process from fund raising to investment exits. The model also describes the linkages of venture capital market to the financial/capital markets and the related capital market laws.For the young compani

34、es entering the over-the-counter (OTC) market, the investments in their stocks involve risk. Many microcap companies4 are new and have no proven track record. Some of them have no assets or operations. As microcap stocks trade in low volumes, any size of trade can have a large percentage impact on t

35、he price of the stock. These risks have caught the attention of SEC to enforce regulatory compliance on the securities market. The young companies who later enter the market do not appreciate the heightened costs coming from the laws and regulations governing the capital markets. Small issuers often

36、 lack the expertise and experience to deal with the Securities Act of 1933 and the Securities Exchange Act of 1934. The aforementioned problems to capital formation would affect the level of venture capital investment, inhibit innovation and adversely affect national productivity.Currently, the laws

37、 and regulations pose impairment to small issuers seeking capital. In the future, it would seem that the SEC would produce further legislative initiatives on top of this to protect investors. From the venture capitalists perspective, they try to understand that the regulations are financial watchdog

38、s to help mitigate problems in microcap frauds. However, they argue that the regulatory focus should be on sales (not offers). In their view, venture capital is an important intermediary in the financial/capital market (as shown in Fig. 5). The IPO market and the process of going public are central

39、to the success of venture capital investment and reinvestment into new ventures. Therefore, they would rather see SEC not making the new regulations burdensome on small business capital formation and competition.3. Policy implications and conclusionsGiven that the stock market is essential for the v

40、enture capitalists to exit through an initial public offering (IPO), this study explores the influence of capital market laws and IPO process on venture capital. The analysis suggests that the government should take action to improve the environment for small business capital formation, consistent w

41、ith other public policy goals since entrepreneurial businesses are important to the economy. Policymakers wishing to develop venture capital market should effectively develop securities laws to assist the capital markets to function and therefore IPOs. It is argued that the process of venture capita

42、lists getting a return from the VC funds as a result of successful exits through IPOs would help stimulate the new venture capitalists to enter the VC market (further initiating new investments).文献翻译资本市场法律和首次公开发行对风险投资的影响 European Journal of Operational ResearchVolume 192, Issue 1, 1 January 2009, Pa

43、ges 293-301摘要：本文关注的是资本市场的法律和首次公开发行（IPO）对风险投资过程的影响。本文讨论了美国联邦和州法律以及美国证券交易委员会（SEC）等方面的法规对在风险资本市场的影响，他们被认为是经济增长和企业家的负担。对Sarbanes-Oxley法律和未来的投资法案以及创业企业家首次公开发行的退出渠道也会讨论到。本文描述了风险投资过程从融资到退出的整个过程。本文阐述了风险资本市场和金融市场、资本市场，以及与资本市场法律的关系。美国证券交易委员会的法规对风险投资的发展具有重要的意义。关键字：资本市场、证劵、企业家精神、法制监管的企业、法律1.1创业投资资金和资本市场的关系Bygra

44、ve 和 Timmons（1992），Gompers 和Lerner（2001）提到风险投资（VC）是一种支持高兴技术企业的发展，高风险，具有潜在高回报的投资，通过股权的参与为高新技术企业提供资金。换句话说，VC是上市前的资本由专业投资者提供的。Megginson （2002）定义了现代意义的风险投资，是一个专业管理的资金池通过明智的退出战略而参与的股权投资。风险投资市场对政策制定者具有非常大的吸引力，因为这种类型的投资能够为具有高增长潜力的高科技企业提供资金，有利于吸引投资者参与到当地的经济发展当中。由于创新往往遵循一个生命周期，本文显示了资金需求与生命周期的创新过程的各个阶段相挂钩。在种子

45、，启动和初期阶段，创业型企业的资金一般由家庭和风险资本家所支持。一些风险投资家关注于后期的投资以帮助企业在股票市场公开发行时吸引更多的投资者，这时这些风险投资家发挥了关键的作用。通过这个投资过程，一般来说，投资者将会拥有股权，可以将股权转化成投资者对目标企业的股权。Black and Gilson,（1998）说到在美国风险投资最成功的原因是因为有可行的退出机制。资本市场的发展，例如纳斯达克，区域股市，纽约证券交易所（NYSE），美国证券交易所（AMEX）他们都在美国风险投资成功中扮演着重要的角色。鉴于首次公开发行（上市）为投资者提供了一个快速退出，Jeng and Wells （2000）研

46、究了一些影响风险投资发展的决定因素。对来自21个国家的统计数据，得出结论认为，风险资本市场规模和增长是由一个国家的股市流动性的影响。在风险投资行业，在公开发行的公司中，公司的公开发行上市是风险投资资金支持成功的一种信号，Gompers（1998）, Gompers 和 Lerner（1998）， Gompers 和Lerner （1999）, Gompers 和 Lerner（2001）, Black 和 Gilson（1998）, Jeng 和 Wells, （2000）, Lerner（1999）, Lerner（2002）, Barnesetal（2003） 和 Hellmann（200

47、0）提到。首次公开发行被投资者认为是能够得到回报的最好的退出方式，根据传统的金融理论，一个理性的投资者所要求的回报是受风险投资项目的风险和风险较少所得到的回报这两者的影响的。IPO是最具有吸引力的选择，在股票市场里，因为它不仅流动性高，而且价值相对于流动想也是最高的。Brealeya和 Myers, （1996）, Wright 和 Robbie（1998）， Black 和 Gilson（1998）提出大多数的风险投资家和投资者都是风险规避者，如果他们不能从投资中得到钱的话，宁愿把钱投进更有利可图的行业。表2显示了两个向上倾斜的无差异曲线，以反映- E的（R）的两个不同的创业资本家风险规避偏

48、好。在相关投资组合理论中，风险，并收益E(r)，和无差异曲线一起，给出了风险资本家的满意的水平。(Makens, 2004 and Bodie et al., 2005提出由于投资新的创业企业是有风险的的，风险资本家会要求风险溢价作为投资回报，然而，高的回报率与经常与小发行优势的增长潜力是不相协调的。风险投资基金管理公司一般能够筹集到多个资金池，投资于众多行业。这就意味着有一个有利可图的，在美国证券交易委员会登记过的退出方式，以便能使风险资本家在资本市场卖出所持股份。VC所支持的公司上市，他们必须遵守联邦法律和所在国的证券发行和承销的法律。此外，他们必须满足特定的信息披露和报告要求。1.2 关

49、于创业投资的法律法规Cummingetal.（2005） , Kanniainen 和 Keuschnigg（2003）, Keuschnigg, （2002）, Keuschnigg（2003）, Keuschnigg 和 Nielsen(2001), Keuschnigg 和 Nielsen(2003), Keuschnigg 和 Nielsen（2004） 及 Armour（2003)讲到风险资本市场是受到一个国家的法律和体制结构的影响。法律和监管变量影响VC的供应方面和风险资本的金融投资需求。美国政府在发展风险投资方面所扮演的角色我们可以清楚地看到。例如，小企业投资公司（SBICs）于1958年立法，以鼓励小企业投资。1978年的税收法案和1981年经济恢复税收法案，降低资本收益税率，以鼓励风险资本投资。Bygrave 和 Timmons（1992），Gompers 和 Lerner（1998）和 Lerner（1999）提到1974年的雇员退休收入保障法案（ERISA的），允许养老基金投资于私募基金。在美国，股权交易由证券