The determinants of venture capital in Europe - evidence across countries

Elisabete Gomes Santana Félix (efelix@uevora.pt) and Cesaltina Pires
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Elisabete Gomes Santana Félix: Assistant Professor, University of Évora and CEFAGE-UÉ
Authors registered in the RePEc Author Service: Elisabete Gomes Santana Félix

CEFAGE-UE Working Papers from University of Evora, CEFAGE-UE (Portugal)

Abstract: This article analyzes the determinants of the European venture capital market, extending the equilibrium model from Jeng and Wells (2000). Our empirical model includes many of the determinants already tested in previous studies. In addition, we test whether the unemployment rate, the trade sale divestment and the market-to-book ratio are important factors in explaining venture capital. We use aggregated data from the European venture capital market as well as macroeconomic data, to estimate panel data models, with fixed and random effects. The random effects models revealed to be the most adequate. Our results confirm the importance of some of the already known factors and show that the unemployment rate and trade sale divestments are important determinants in the European venture capital market.

Keywords: Venture capital; Europe; Venture capital determinants; IPO; Trade sale; Write-off; Unemployment rate. (search for similar items in EconPapers)
JEL-codes: C23 G24 G32 G34 M13 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2007
New Economics Papers: this item is included in nep-cfn, nep-eec and nep-ent
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Citations: View citations in EconPapers (10)

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Related works:
Journal Article: The Determinants of Venture Capital in Europe — Evidence Across Countries (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:cfe:wpcefa:2007_01

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