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Tarek Miloud

Other affiliations: University College London
Bio: Tarek Miloud is an academic researcher from Inseec Business School. The author has contributed to research in topics: Initial public offering & Venture capital. The author has an hindex of 4, co-authored 15 publications receiving 176 citations. Previous affiliations of Tarek Miloud include University College London.

Papers
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Journal ArticleDOI
TL;DR: In this article, an integrated theoretical framework was developed to examine whether venture capitalists' valuation of a new venture can be explained by factors identified in the strategy theories as important to firm performance.
Abstract: How to value a new venture is critical in entrepreneurial financing. This article develops an integrated theoretical framework to examine whether venture capitalists' valuation of a new venture can be explained by factors identified in the strategy theories as important to firm performance. Empirical results from the analyses of 184 rounds of early-stage venture capital investments in 102 new ventures support the central proposition that venture capitalists do take into consideration those factors that are important to firm performance in their valuation of new ventures. More specifically, this article finds that attractiveness of the industry, the quality of the founder and top management team, as well as external relationships of a new venture significantly and positively affect its valuation by venture capitalists when it seeks venture capital financing in its early stages of development. These empirical findings help to establish an initial linkage between the well-developed theories in strategic management and underresearched venture capital valuation practice. It brings more theoretical rigor to the venture capital investment literature by introducing a systematic approach to identify and measure factors important to new venture valuation. It explores a possibility to develop a supplementary method to value an early-stage new venture when extant valuation methods fail to yield consistent results because these methods require accounting information that a new venture typically cannot provide.

105 citations

Posted Content
TL;DR: In this article, an integrated theoretical framework was developed to examine whether venture capitalists' valuation of a new venture can be explained by factors identified in the strategy theories as important to firm performance.
Abstract: How to value a new venture is critical in entrepreneurial financing. This article develops an integrated theoretical framework to examine whether venture capitalists' valuation of a new venture can be explained by factors identified in the strategy theories as important to firm performance. Empirical results from the analyses of 184 rounds of early-stage venture capital investments in 102 new ventures support the central proposition that venture capitalists do take into consideration those factors that are important to firm performance in their valuation of new ventures. More specifically, this article finds that attractiveness of the industry, the quality of the founder and top management team, as well as external relationships of a new venture significantly and positively affect its valuation by venture capitalists when it seeks venture capital financing in its early stages of development. These empirical findings help to establish an initial linkage between the well-developed theories in strategic management and underresearched venture capital valuation practice. It brings more theoretical rigor to the venture capital investment literature by introducing a systematic approach to identify and measure factors important to new venture valuation. It explores a possibility to develop a supplementary method to value an early-stage new venture when extant valuation methods fail to yield consistent results because these methods require accounting information that a new venture typically cannot provide.

81 citations

Journal ArticleDOI
TL;DR: In this article, the presence of earnings management in initial public offerings (IPOs) of French firms was studied and the results suggest that firms with the highest discretionary current accruals significantly underperformed, compared to equivalent companies in the third year following IPOs.
Abstract: This paper studies the presence of earnings management in initial public offerings (IPOs) of French firms. When the aim of earnings management is to increase the attractiveness of the offered shares it needs to go undetected by market participants. This invisibility makes earnings management difficult to detect in the income statement and the balance sheet, thus investors would benefit from other information that reveals the probability of earnings management. Managers’ and owners’ incentives for managing earnings are used to assess the likelihood that earnings management is used before the IPO. Earnings management is tested by observing time-series profiles of accruals. The sample consists of French firms that went public in the years 1995 to 2008 on the Euronext Paris Exchange. The results suggest that IPO firms with the highest discretionary current accruals significantly underperformed, compared to equivalent companies in the third year following the IPOs.

17 citations

Journal ArticleDOI
TL;DR: In this paper, the authors examined the market microstructure trading characteristics of venture backed initial public offerings (IPOs) in the French market using high frequency Euronext Paris data.
Abstract: Using high frequency Euronext Paris data, the paper examines the market microstructure trading characteristics of venture backed initial public offerings (IPOs) in the French market. Previous North American market studies approve the role played by venture capital (VC) firms for the certification of IPOs and their role in reducing the asymmetric information between investors. The study sample is composed of IPOs realized during the period 2000–2013 both with and without VC firm involvement. The results present no significant price difference between both IPO types. The cost of asymmetric information and of price volatility is higher for the VC-backed operations. Moreover, the study shows that underpricing is positively correlated to the cost of the information asymmetry. Contrary to previous studies, the results show that the effects of VC firm certification and monitoring are not perceived by IPO investors in the French market.

5 citations

Journal Article
TL;DR: In this article, the authors investigated the influence that CEO tenure may have on firm growth and found that the effect of CEO tenure on growth is conditional on the firm's growth rate, which is consistent with the view that long CEO tenure is beneficial in a more stable environment, but detrimental under rapidly changing circumstances.
Abstract: This paper investigates the influence that CEO tenure may have on firm growth. We hypothesize that the effect of CEO tenure is conditional on the firm's growth rate. The empirical analysis reveals that the effect on growth is negative in high-growth firms and positive in low-growth firms. These findings are consistent with the view that long CEO tenure is beneficial in a more stable environment, but detrimental under rapidly-changing circumstances.

4 citations


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Book
01 Jan 2009

8,216 citations

Journal ArticleDOI

294 citations

Journal ArticleDOI
TL;DR: In this article, the role of trademark applications in the start-up valuations of venture capitalists is investigated and it is shown that the number and breadth of trademark application have inverted U-shaped relationships with the financial valuations by VCs.
Abstract: This study investigates the role of trademarks in the start-up valuations of venture capitalists (VCs). Our results show that the number and breadth of trademark applications have inverted U-shaped relationships with the financial valuations of start-ups by VCs. The findings also indicate that in later funding rounds, the value of trademark applications decreases when the start-up progresses into more advanced development stages. Start-ups should consider these findings when seeking funding from VCs and should stress their market and growth orientations and their willingness to protect their marketing investments by highlighting their trademark activities.

132 citations

Journal ArticleDOI
TL;DR: In this paper, the role of trademark applications in the start-up valuations of venture capitalists is investigated, and it is shown that the number and breadth of trademark application have inverted U-shaped relationships with the financial valuations by VCs.

114 citations