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Table 5b
Probability of Delisting for CVC Backed and IVC Backed Firms
This table reports share of IPO companies de-listed within 1 through 5 years in the post IPO period. Panel A reports the percentage of IPO
companies delisted due to liquidation (delisting code DLSTCD between 400 and 499 or between 520 and 600). Panel B reports share of IPO
companies delisted due to merge or acquisition (delisting code DLSTCD between 200 and 299). The delisting data are from CRSP. “CVC” stands
for IPO firms with at least one CVC investor. “IVC” represents IPO firms backed by IVCs alone. “HCVC” stands for IPO firms where the CVCs’
share in total VC investment is above 20% while “LCVC” stands for the IPO firms with small financial presence of CVCs (below 15%). ***, **,
and * indicate significance of reported t-statistics at the 1, 5, and 10 percent levels, respectively.
Year CVC IVC Diff. T-stat HCVC LCVC Diff. T-stat
Panel A: Share Delisting Due to Liquidation (%)
1 0.22 0.18 0.04 0.15 0.00 0.41 -0.41 -0.80
2 4.37 2.56 1.80*** 2.02 8.23 2.85 5.38*** 2.45
3 6.99 4.94 2.04* 1.71 11.39 5.28 6.11*** 2.26
4 9.83 7.44 2.38 1.66 15.82 7.72 8.10*** 2.56
5 11.57 10.07 1.50 0.93 18.35 8.54 9.82*** 2.95
Panel B: Share Delisting Due to Merger or Acquisition (%)
1 1.97 1.77 0.20 0.28 0.63 2.85 -2.21 1.56
2 9.61 7.50 2.10 1.47 6.33 10.98 -4.65 1.58
3 15.72 14.34 1.38 0.74 12.03 17.48 -5.45 1.48
4 20.74 19.71 1.04 0.49 18.99 21.14 -2.15 0.52
5 24.02 25.32 -1.30 0.57 22.15 23.98 -1.83 0.42
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