The Impact of Venture Capital on Innovation Behaviour and Firm Growth

Michael Peneder

No 363, WIFO Working Papers from WIFO

Abstract: Proposing a novel research design for firm-level impact studies, I investigate the effects of venture capital financing on corporate performance by applying a two-stage propensity score matching on Austrian micro-data. Controlling for differences in industry, location, legal status, size, age, credit rating, export and innovation behaviour, the findings (i) assert the financing function of venture capital, showing that recipients lacked access to satisfactory alternative sources of capital; (ii) identify selection effects, where venture capital is invested in firms with high performance potential; and finally (iii) confirm the value adding function in terms of a genuine causal impact of venture capital on firm growth, yet not on innovation output.

Keywords: venture capital; entrepreneurship; firm growth; propensity score matching (search for similar items in EconPapers)
Pages: 37 pages
Date: 2010-04
New Economics Papers: this item is included in nep-bec, nep-cse, nep-ent, nep-ino and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (36)

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Related works:
Journal Article: The impact of venture capital on innovation behaviour and firm growth (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:wfo:wpaper:y:2010:i:363

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