Vincenzo Capizzi - Academia.edu (original) (raw)

Papers by Vincenzo Capizzi

New Frontiers in Entrepreneurial Finance Research, 2019

The recent explosion of the informal venture capital is stimulating finance scholars to deeply in... more The recent explosion of the informal venture capital is stimulating finance scholars to deeply investigate the major determinants, characteristics and possible implications of this phenomenon within the start-up ecosystems. The rising literature on business angels (BAs) still misses to adequately cover many investigation areas, such as the operations and the role played by the different typologies of BA networks (BANs) and the valuation of the contributions provided by BAs to the performance of the angel-backed companies. The contributions of Bonini et al. (2018, 2019) are part of the ongoing debate on these two research areas that have not yet been exhaustively explored. The two papers show that the affiliation to an angel community affects BAs\u2019 investment decisions, though it doesn\u2019t seem to have a significant impact on the survival and profitability of the funded ventures. On the contrary, by co-investing in an angel syndicate, BAs may enjoy risk- and information-sharing benefits that structurally affect both their investment practices and the performance of the funded ventures. Also, the BAs\u2019 willingness to play an active role does have a positive impact on angel-backed companies\u2019 survival and growth. Finally, the intensity of BAs\u2019 soft monitoring seems negatively related to the performance of the funded ventures because of the impact on the trust-based entrepreneur\u2013 angel relationship. However, angel communities might be able to decrease and distribute within the network the need for individual monitoring while increasing members\u2019 confidence in the angel investments

I Business Angels sono investitori che operano in quel settore specifico del Venture Capital deno... more I Business Angels sono investitori che operano in quel settore specifico del Venture Capital denominato Informal Venture Capital. La loro particolarit\ue0 consiste nell'investire capitali propri nel capitale di rischio delle aziende in fase di seed o di start-up, fornendo cos\uec le risorse per finanziare progetti di portata medio-piccola e andando a coprire il funding gap che altrimenti si creerebbe tra la fondazione dell'impresa e l'eventuale finanziamento da parte dei Venture Capitalist. Negli anni il mercato internazionale dell'Informal Venture Capital si \ue8 evoluto al punto da giustificare, sulla scia del modello americano, la creazione di Network che raccolgono questo tipo di investitori; inoltre, si sono fatte pi\uf9 frequenti le opportunit\ue0 di collaborazione tra Business Angels e Venture Capitalist, tradizionalmente operanti in contesti separati. Anche in Italia, dalla fine degli anni Novanta, i Business Angels hanno in IBAN il loro Network di riferimento ed \ue8 proprio da questa esperienza che nasce il volume, del quale viene presentata l'analisi dei dati raccolti tramite un'indagine di mercato che ha coinvolto 140 Business Angels italiani. Nonostante la difficolt\ue0 di reperire i dati delle operazioni effettuate e di quantificarne il valore, per la prima volta le informazioni raccolte consentono di dare una dimensione al fenomeno dell'Angel Investing italiano permettendo, inoltre, di individuare un trend di comportamento in tali investitori e di focalizzarne le caratteristiche principali

Il ruolo del mercato finanziario all'interno dell'economia e il rapporto tra banca, borsa... more Il ruolo del mercato finanziario all'interno dell'economia e il rapporto tra banca, borsa e mercati finanziari sono stati esplorati da Tancredi Bianchi in molte occasioni nel corso dei suoi studi, sempre all'interno di una visione sistemica. Egli ha commentato l'evoluzione del mercato e l'introduzione di nuove normative o di vere o presunte innovazioni istituzionali e di prodotto, mettendone in luce potenzialit\ue0 e criticit\ue0 in considerazione del contributo ultimo a supporto dell'economia e dello sviluppo del paese. Il volume contiene i saggi dedicati all'analisi dei mercati finanziari, muovendo dalla consapevolezza della centralit\ue0 del capitale di rischio, oltre che del capitale di debito, nella fisiologica composizione delle fonti sia delle imprese sia delle banche. Capitale di rischio che non pu\uf2 essere aumentato esclusivamente per mezzo dell'autofinanziamento ma che richiede l'apertura dell'assetto proprietario oltre i soci fondatori ed \ue8 quindi favorita dalla quotazione in borsa. Inoltre, il mercato finanziario negli studi di Tancredi Bianchi svolge un ruolo importante nel favorire, su orizzonti temporali lunghi, l'impiego pi\uf9 profittevole del risparmio, vero e proprio punto di forza dell'Italia rispetto ad altri paesi. Diversi sono gli approcci degli studi presentati: in taluni casi adottano una visione d'insieme per commentare l'evoluzione del mercato mobiliare o i riflessi dell'evoluzione normativa, in altri si esplorano aspetti specifici e criticit\ue0 dell'innovazione istituzionale e di prodotto che hanno caratterizzato la gestione del risparmio negli ultimi anni. Sono accomunati dal fatto di esaminare temi alla frontiera degli studi sulla materia e spesso riportati al centro del dibattito dalla crisi finanziaria in atto

Journal of Small Business Management, 2020

ABSTRACT This study investigates whether the individual attributes and investment approaches of b... more ABSTRACT This study investigates whether the individual attributes and investment approaches of business angels (BAs) affect the growth of funded companies by distinguishing between two firm types: gazelles and ponies. We draw upon an original data set comprising 265 small Italian firms (49 that received BA financing and 216 in the propensity score matched control group). Building on insights drawn from the resource-based view and absorptive capacity theory, we find that BAs with entrepreneurial experience positively affect the sales growth of gazelles only. Moreover, the role of BAs’ investment experience and coaching in the growth rates of both gazelles and ponies is insignificant. Interestingly, monitoring helps boost ponies’ performance but stifles growth among gazelles.

Venture Capital, 2019

The last decade has seen the emergence of alternative sources of early-stage finance, which are r... more The last decade has seen the emergence of alternative sources of early-stage finance, which are radically changing and reshaping the start-up ecosystem. These include incubators, accelerators, science and technology parks, university-affiliated seed funds, corporate seed funds, business angelsincluding "super-angels", angel groups, business angel networks and angel investment fundsand both equity-and debt-based crowdfunding platforms. In parallel with this development, large financial institutions that have traditionally invested in late-stage and mature companies, have increasingly diversified their investment portfolios to "get into the venture game", in some cases, through the traditional closed-end funds model and, in other cases through direct investments and coinvestments alongside the closed-end funds. This paper reviews the main features, investment policies and risk-return profiles of the institutional and informal investors operating in the very early stage of the life cycle of entrepreneurial firms. It concludes that traditional closed-end venture capital funds continue to play an important role in early stage finance because of their unique competences (e.g. screening, negotiating and monitoring) in what has become a wider and more complex financing ecosystem.

SSRN Electronic Journal, 2017

We provide empirical evidence of the post-investment performance and survivorship profile of ange... more We provide empirical evidence of the post-investment performance and survivorship profile of angel-backed companies, filling a long-standing gap within the entrepreneurial finance literature. Using a unique database of 111 angel-backed companies that received angel investments between 2008 and 2012 and at least 3 years of post-investment financial data, we develop an innovative performance metric and show that the performance and the probability of survival of investee companies are positively affected by the presence of angel syndicates and the hands-on involvement of business angels, while they are negatively related to the intensity of angel monitoring and the structure of equity provision. Our results are robust to several endogeneity tests and provide insights on the multifaceted contributions of angel investors to the performance and survival of new ventures.

SSRN Electronic Journal, 2018

Despite the enduring relevance of venture capital as a source of funding for new firms, the last ... more Despite the enduring relevance of venture capital as a source of funding for new firms, the last decade has seen the emergence of multiple alternative sources of funding, radically reshaping the start-up ecosystem and posing new questions for both academics and practitioners. In this review paper, we provide a comprehensive analysis of the challenges and opportunities opened by these new financing structures, trying to shed light on the features, investment policies and risk-return profiles of institutional and informal investors providing capital to early stage companies.<br><br>We begin by critically reviewing the strengths and weaknesses of the main alternative capital providers. We then highlight that traditional closed-end venture capital funds, while experiencing competitive pressure, still play a critical role in the financing structure of new firms because of their unique production process and distinctive competencies. With conclude by providing a comprehensive representation of the complex and multidimensional nature of startups that can be useful to identify more effective fundraising strategies and tackle new and yet unexplored research questions.<br>

Journal of Financial Management, Markets and Institutions, 2018

In this paper, we investigate the post-IPO operating performance of acquiring companies listed in... more In this paper, we investigate the post-IPO operating performance of acquiring companies listed in the US in the period 1986–2008. We find that acquiring IPO firms delivers better operating returns when compared to non-acquiring IPO firms in the five years after the listing. This result holds controlling for both IPO and firm-specific characteristics. Furthermore, acquiring targets already listed on the stock exchange and running stock deals are associated with the improved operating performance. Finally, we find that acquisitions also affect the newly listed companies’ survival, reducing both the time to failure and the time to being acquired, which suggest a structural acceleration of the “natural” company lifecycle.

Journal of Banking & Finance, 2018

We provide first-time evidence of the post-investment performance and survivorship profile of ang... more We provide first-time evidence of the post-investment performance and survivorship profile of angel-backed companies. Using a unique database of 111 angel-backed companies that received angel investments between 2008 and 2012 and at least 3 years of post investment financial data, we show that both the performance and the probability of survival of investee companies, are positively affected by the presence of: 1) angel syndicates and 2) by the hands-on involvement of business angels. Differently, the intensity of angel monitoring and the structure of equity provision negatively affect the development of companies. Our results provide insights on the contribution of angel investors to the development of new ventures.

Journal of Corporate Finance, 2018

This paper provides preliminary evidence on the effects of membership in an angel group or networ... more This paper provides preliminary evidence on the effects of membership in an angel group or network (AG/BAN) on the investment choices of business angels. Using a proprietary dataset containing qualitative and quantitative information on 810 angel or angel-group backed investments on 619 companies by 330 unique business angels from 2008 to 2014, we show that AG/BAN membership generates valuable information, networking, monitoring and risk reduction effects, which ultimately affect the amount of personal capital committed by each angel investor and their equity stake in the investee companies. These results extend our knowledge of the investing behavior and characteristics of business angels, a funding source that is rapidly gaining prominence in support of new ventures and the development of the global economy.

Corporate Ownership and Control, 2009

During last years numerous studies have focused attention on determinants of leverage buyouts (LB... more During last years numerous studies have focused attention on determinants of leverage buyouts (LBOs), finding strong evidence about the capability of those operations to improve firms’ productivity and operating performance. Nonetheless, there is a lack of research concerning the performance realized by secondary buyouts (SBOs), which are operations where a LBO is refinanced with a new ownership structure that includes a new set of private equity financiers and a new debt structure. By the analysis of a initial dataset of 164 transactions occurred in Italy during the period from 2000 to 2008, we find evidence of SBOs’ rationales of corporate governance, with significant firms’ performance improvements.

Corporate Ownership and Control, 2017

Several studies have found the existence of a relationship between the role of investment banks a... more Several studies have found the existence of a relationship between the role of investment banks appointed as advisors in M&A deals and the yields earned by their clients. Traditionally this relationship is fostered by the ability of the leading investment banks to arrange and structure the best deals – i.e. the Superior Deal Hypothesis – and by the “certification effect”, namely that their presence provides assurance to the capital markets where are traded the companies involved– i.e. the Certification Effect. Our study also investigates the strength and direction of this relationship before and after Lehman Brothers collapse. The analysis, which uses an original composite metric in order to measure the reputation variable, is focused on the transactions that took place between listed companies in two time frames specifically pre and post the Lehman Brothers bankruptcy. The total sample is composed of 229 transactions, divided into 161 and 68 observations, pre and post Lehman respec...

Corporate Ownership and Control, 2008

In the past 20 years share buybacks have experienced a tremendous growth. Yet, we still don’t hav... more In the past 20 years share buybacks have experienced a tremendous growth. Yet, we still don’t have a clear understanding of this phenomenon, also because of limited samples available on these corporate decisions. This paper aims at testing the main hypotheses on buybacks drivers and effects by analyzing the impact of share repurchase announcements on the performance of companies listed on the Italian Stock Exchange, conditional and unconditional on the 1998 introduction of the Capital Market Reform. Our findings show that, by imposing more stringent rules on transparency and equal treatment of shareholders in buybacks operations, the change in regulation has increased the volume and frequency of share repurchases announcements. Analogously, the number of repurchasing companies has soared as well. Finally, market reaction to buybacks, as measured by abnormal returns and cumulative abnormal returns has consistently reversed switching from negative to positive long term CARs

New Issues in Financial and Credit Markets, 2010

The last few decades have seen increased emphasis on the dynamism of small and medium enterprises... more The last few decades have seen increased emphasis on the dynamism of small and medium enterprises (SMEs) to accelerate economies. This has been accompanied by a greater focus on creating financial markets that efficiently meet the needs of these businesses. These trends are of particular interest in Italy, whose economy has traditionally depended on the wealth produced by its industrial districts.

SSRN Electronic Journal, 2015

SSRN Electronic Journal, 2012

ABSTRACT How do analysts make their forecasts? In this paper, we analyze how sell-side analysts e... more ABSTRACT How do analysts make their forecasts? In this paper, we analyze how sell-side analysts estimate target prices and show that they consistently employ subjective adjustments to baseline models. We argue that the amount of deviation from the basic valuation model serves as a proxy for the analysts’ (private) information or experience. For a panel of analyst reports, we show that target price forecasts that deviate significantly from simple multiple-based pseudo-target prices are (ex-post) more accurate. By controlling for various stock and broker characteristics, we also demonstrate that our results are not driven by the degree of sophistication of the valuation models. Surprisingly, market participants seem to be unaware of this ex-ante identifiable difference in accuracy because the short-run price reaction to the target price issuance is not correlated with the degree of private information incorporated into the forecast. Consistent with our results on superior accuracy, however, we find evidence that these forecasts outperform in the long-run.

SSRN Electronic Journal, 2007

§ Earlier drafts of this paper were presented at the 25th International Symposium on Forecasting,... more § Earlier drafts of this paper were presented at the 25th International Symposium on Forecasting, 12-16 June 2005, San Antonio and at the 6th International Conference of the Middle East Economic Association, 14-16 March 2007, Dubai. We wish to thank Stefano Caselli, ...

SSRN Electronic Journal, 2021

Digitization creates new financial channels that complement traditional intermediaries, but may r... more Digitization creates new financial channels that complement traditional intermediaries, but may raise concerns over fraud, cybersecurity, or bubbles. Artificial intelligence and machine learning change the way in which traditional investors work. This special issue focuses on economic, cultural, and regulatory determinants of fintech development, and on the new forms of information production and processing engendered by digital entrepreneurial finance. We provide a general overview of digitization in the market for entrepreneurial finance, illustrate how the different articles in the special issue contribute to advance our knowledge, and identify promising avenues for research.