Dr Anup Basnet


Lecturer in Finance
Ph.D. in Business Administration (Finance)
+44 (0)1483 683100
62 MS 02
Thursdays and Fridays 14:00 - 15:30

Academic and research departments

Department of Finance and Accounting.

About

Areas of specialism

Venture Capital, Initial Public Offering, Mergers and Acquisitions, Litigation

University roles and responsibilities

  • Academic Integrity Officer
  • Personal and Placement Tutor

    My qualifications

    2021
    PhD in Business Administration (Finance)
    Concordia University
    2015
    MSc in Finance
    Hanken School of Economics
    2022
    PG Cert in Teaching (Higher Education)
    University of Surrey

    Previous roles

    2021 - 2022
    Second Year Programme Leader, Accounting and Finance BSc
    University of Surrey
    2020 - 2021
    Part-time Instructor (Finance)
    Concordia University, Montreal, Canada

    Affiliations and memberships

    BAFA, FMA
    Member

    Research

    Research interests

    Teaching

    Publications

    Anup Basnet, Thomas Walker (2024) Post-IPO lead VC involvement, merger-related litigation, and target firm valuation. British Journal of Management

    Venture capital firms (VCs) provide certification and monitoring services to the initial public offering (IPO) companies they finance, as has been well documented in the academic literature. Yet, there are few studies that explore what role – if any – VCs play when an IPO company is subsequently acquired, particularly if that acquisition is legally contested. Using a sample of 721 M&A offers for US VC-backed IPO companies, announced between 1996 and 2018, we find that a takeover bid that occurs in the presence of the lead VC commands a higher target firm valuation and is less likely to be legally contested than a bid for a company from which the lead VC has already exited. In addition, companies in which the lead VC is present enjoy higher stock-price returns in response to M&A announcements. Our results provide new evidence regarding VC certification and monitoring – including its role as a litigation deterrent – long after the IPO.

    Anup Basnet, Kuntara Pukthuanthong, Harry Turtle, Thomas Walker (2024) VC ownership post-IPO: When, why, and how do VCs exit?, (Conditionally accepted 2024: Journal of Financial Research)

    We examine the evolution of lead venture capital firm (VC) ownership after their portfolio companies (PCs) are publicly listed. We find that, on average, lead VCs retain their shares for three years post-IPO. Higher liquidity pressure and better stock market performance lead to faster VC exits, while higher VC reputation, better VC monitoring, and higher quality PCs lead to slower exits. VCs mostly use sales in the open market, share distributions, and mergers and acquisitions to divest their shares. Higher liquidity pressure incentivizes VCs to use majority share distributions, while better stock market performance increases their preference for continuous sales.

    Anup Basnet, Frederick Davis, Thomas Walker, Kun Zhao (2021) The effect of securities class action lawsuits on mergers and acquisitions. Global Finance Journal, 48, 100556

    This paper investigates whether shareholder class action litigation affects the takeover candidacy, premium, and completion rate of mergers and acquisitions involving defendant target firms. We use a comprehensive dataset of publicly traded U.S. firms that became the targets of takeover bids between 1998 and 2016 and find that firms subject to shareholder class action lawsuits within the previous two years are more likely to be targeted for acquisition while commanding a significantly higher premium. Firms that face such litigation after a takeover announcement experience a significant decrease in takeover completion.

    Sergey Barabanov, Anup Basnet, Thomas Walker, Wangchao Yuan, Stefan Wendt (2021) Firm- and country-level determinants of green investments: An empirical analysis. Managerial Finance, 47 (11), 1672-1692

    The authors find that larger firms tend to invest more in green projects, whereas firms that are highly valued or more profitable are less likely to go green. In terms of country-level determinants, we find that the gross domestic product (GDP) per capita and population are positively related with GI, while GDP growth and surface area are negatively associated with GI. Additionally, firms in common-law countries and English-speaking countries make fewer GI than firms in other countries.

    Anup Basnet, Magnus Blomkvist, Douglas J Cumming (2022) Premature listing and post-IPO venture capital refinancing. Economics Letters, 216, 110582

    We examine why venture capital firms re-invest in portfolio companies also after the IPO. Companies are taken public earlier than optimal, resulting in lower post-IPO returns, and a greater likelihood of, and shorter time to, the first post-IPO VC refinancing.

    Anup Basnet, Magnus Blomkvist, Emilios Galariotis (2022) The role of ESG in the decision to stay or leave the market of an invading country: The case of Russia, Economics Letters, 216, 110636

    We study firms’ decisions to stay or leave the Russian market amid the invasion of Ukraine. Lower ESG scores increase the likelihood of keeping the Russian operations unchanged. Higher scores lead to less negative stock market reactions following complete exits.