The Effects of Venture Capital Network Centrality on Earnings Management and Profitability of Portfolio Company: Evidence from the U.S. Market

Authors

Yosavee Niranvichaiya, National Institute of Development Administration, Bangkok ThailandFollow
Sorasart Sukcharoensin, National Institute of Development Administration, Bangkok Thailand

JEL Classification System

G30

Abstract

Based on a sample of 788 U.S. venture capital-backed IPO companies from 2006 to 2015, this research evaluates the impact of network centrality, venture capital (VC), and earnings management on the future profitability of VC-backed portfolio companies. The results suggest that companies backed by VCs with higher network centrality or that are “more centralized” are likely to have better future profitability after an IPO, even with the use of accrual-based earnings management.

Recommended Citation

Niranvichaiya, Yosavee and Sukcharoensin, Sorasart (2023) "The Effects of Venture Capital Network Centrality on Earnings Management and Profitability of Portfolio Company: Evidence from the U.S. Market," DLSU Business & Economics Review: Vol. 32: No. 2, Article 4.
DOI: https://doi.org/10.59588/2243-786X.1156
Available at: https://animorepository.dlsu.edu.ph/ber/vol32/iss2/4