01295nas a2200133   4500008004100000245007700041210006900118260000900187520079900196653001200995100002101007700001701028856011601045       2004                        eng d00aGrandstanding and Venture Capital Firms in Newly Established IPO Markets0 aGrandstanding and Venture Capital Firms in Newly Established IPO  c20043 aThe grandstanding theory posits that young venture capital firms (VCs) will seek to build their reputations by taking ventures public early. In this study, we examine this theory in the Japanese IPO market. With the introduction of MOTHERS and NASDAQ Japan in 1999 and 2000, respectively, with the explicit intent of catering to smaller and younger companies, we are able to examine the influence of these new markets on grandstanding and the IPO process. We find that young lead VC-backed ventures go public at a younger age than mature lead VC-backed ventures and that young lead VC-backed ventures are more underpriced. However, we do not find that young lead VCs have relatively lower equity stakes at IPO. This latter finding is most likely a result of the introduction of the new markets.10aFinance1 aHibara, Nobuhiko1 aMathew, Prem  u/biblio/grandstanding-and-venture-capital-firms-newly-established-ipo-markets-0