Net value: wealth creation (and destruction) during the internet boom

被引:12
作者
Hendershott, RJ [1 ]
机构
[1] Santa Clara Univ, Leavey Sch Business, Dept Finance, Santa Clara, CA 95053 USA
关键词
Internet; wealth creation; venture capital;
D O I
10.1016/S0929-1199(03)00058-0
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
During the internet bubble, dot-com stocks rose by a factor of 35, creating what we now know were massively distorted price signals. This paper looks at net value creation in a sample of 441 venture-backed dot-coms that received over US$21 billion from private and public equity investors. As of the end of 2001, this US$21 billion corresponded to an estimated US$39 billion of enterprise value, giving an annualized return-on-equity capital invested of 19%. These results suggest that, despite the distorted price signals and contrary to popular perception, wealth was created during the dot-com investment boom. (C) 2003 Elsevier B.V. All rights reserved.
引用
收藏
页码:281 / 299
页数:19
相关论文
共 17 条
[1]   ROBUST FINANCIAL CONTRACTING AND THE ROLE OF VENTURE CAPITALISTS [J].
ADMATI, AR ;
PFLEIDERER, P .
JOURNAL OF FINANCE, 1994, 49 (02) :371-402
[2]   DOES VENTURE CAPITAL FOSTER THE MOST PROMISING ENTREPRENEURIAL FIRMS [J].
AMIT, R ;
GLOSTEN, L ;
MULLER, E .
CALIFORNIA MANAGEMENT REVIEW, 1990, 32 (03) :102-111
[3]  
Demers E., 2000, RUDE AWAKENING INTER
[4]  
*GLOB ENTR MON, 2000, EX REP
[5]   Money chasing deals? The impact of fund inflows on private equity valuation [J].
Gompers, P ;
Lerner, J .
JOURNAL OF FINANCIAL ECONOMICS, 2000, 55 (02) :281-325
[6]   The allocation of control rights in venture capital contracts [J].
Hellmann, T .
RAND JOURNAL OF ECONOMICS, 1998, 29 (01) :57-76
[7]  
Higson C., 2000, BUSINESS STRATEGY RE, V11, P10, DOI [10.1111/1467-8616.00125, DOI 10.1111/1467-8616.00125]
[8]   THE EVOLUTION OF BUYOUT PRICING AND FINANCIAL STRUCTURE IN THE 1980S [J].
KAPLAN, SN ;
STEIN, JC .
QUARTERLY JOURNAL OF ECONOMICS, 1993, 108 (02) :313-357
[9]   CAMPEAUS ACQUISITION OF FEDERATED - POST-BANKRUPTCY RESULTS [J].
KAPLAN, SN .
JOURNAL OF FINANCIAL ECONOMICS, 1994, 35 (01) :123-136
[10]  
KAPLAN SN, 2000, 7660 NBER