Author： Bertoni Fabio
Publisher： Springer Publishing Company
ISSN： 0921-898X
Source： Small Business Economics, Vol.40, Iss.3, 2013-04, pp. : 527-552
Disclaimer: Any content in publications that violate the sovereignty, the constitution or regulations of the PRC is not accepted or approved by CNPIEC.
Abstract
Independent venture capital (IVC) investors have more powerful incentives than corporate venture capital (CVC) investors to take actions that signal their capabilities (i.e. to “grandstand). We argue that this should engender differences in the treatment effect of IVC and CVC on the mode of growth of portfolio companies. Short-term sales growth of IVC-backed firms in the period that immediately follows the VC investment should outpace that of CVC-backed firms, while we expect no difference in employment growth. We find support for these theoretical predictions on a sample of 531 Italian new technology-based firms, using several panel estimators to control for endogeneity of IVC and CVC.
Related content
Venture capital financing and the growth of startup firms
By Davila A. Foster G. Gupta M.
Journal of Business Venturing, Vol. 18, Iss. 6, 2003-11 ,pp. :
Access to resources
Recommend
By Dezi Luca Schiavone Francesco Gamma Federico
International Journal of Globalisation and Small Business, Vol. 3, Iss. 4, 2010-03 ,pp. :