EconPapers    
Economics at your fingertips  
 

The impact of venture capital on investee companies: evidence from Spain

Arturo Haro- de-Rosario (), María del Carmen Caba-Pérez () and Leonardo Cazorla-Papis ()
Additional contact information
Arturo Haro- de-Rosario: University of Almería
María del Carmen Caba-Pérez: University of Almería
Leonardo Cazorla-Papis: University of Almería

Review of Managerial Science, 2016, vol. 10, issue 3, pages 577-600

Abstract: Abstract This paper examines the impact of venture capital investors on the financial structure of investee companies and the factors relevant to their capital structure, differentiated according to the investor’s public or private nature. This paper contributes to our understanding of the beneficial effects of such investors in response to the funding needs of SMEs and the decisions taken in this respect. The empirical analysis shows that, on average, these investee companies have a lower level of short-term debt than the average Spanish company. It is suggested that the debt structure is related to the growth opportunities presented, the business sector, the geographic location and the duration of the venture capital participation. These results, which are more significant in the case of companies receiving funds from public investors, highlight the effectiveness of the economic function of venture capital.

Keywords: Venture capital; Capital structure; SME; Long-term debt; 62H12 (Multivariate estimation); 62J05 (Linear regression) (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s11846-015-0169-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:spr:rvmgts:v:10:y:2016:i:3:d:10.1007_s11846-015-0169-5

Ordering information: This journal article can be ordered from
http://www.springer.com/business/journal/11846

Access Statistics for this article

Review of Managerial Science is currently edited by R. Ewert and W. Kürsten

More articles in Review of Managerial Science from Springer
Series data maintained by Sonal Shukla ().

 
Page updated 2017-03-06
Handle: RePEc:spr:rvmgts:v:10:y:2016:i:3:d:10.1007_s11846-015-0169-5