Shu, Pei GiPei GiShuYeh, Yin HuaYin HuaYehSHEAN-BII CHIUHo, Fu ShengFu ShengHo2019-07-232019-07-232011-05-010924865Xhttps://scholars.lib.ntu.edu.tw/handle/123456789/414551The main purpose of this paper to examine how the reputation effect of venture capital (VC) is associated with the initial return and ex-post performance of its invested IPO firms. In this paper, we use 267 Taiwanese IPO firms in 1994-2007 periods and find that VC-backed firms outperform non-VC-backed firms in terms of ex-post equity market-to-book ratio, ROA and R&D expenditure ratio. For those VC-backed IPOs, reputable VC-backed firms outperform mediocre VC-backed ones. Moreover, among the four proxies of VC reputation, the market share with respect to total IPO proceeds is most promising in explaining IPO firms' ex-post performance. The overall result confirms the reputation effect associated with VC. © 2010 Springer Science+Business Media, LLC.Initial public offerings | Reputation effect | Venture capitaljournal article10.1007/s11156-010-0188-x2-s2.0-79955479507https://api.elsevier.com/content/abstract/scopus_id/79955479507