What are Firms? Evolution from Birth to Public Companies

Steven Kaplan (), Strömberg, Per and Berk Sensoy
Authors registered in the RePEc Author Service: Per Stromberg

No 5224, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We study how firm characteristics evolve from early business plan, to initial public offering, to public company for 49 venture capital financed companies. The average time elapsed is almost six years. We describe the financial performance, business idea, point(s) of differentiation, non-human capital assets, growth strategy, customers, competitors, alliances, top management, ownership structure, and the board of directors. Our analysis focuses on the nature and stability of those firm attributes. Firm business lines remain remarkably stable from business plan through public company. Within those business lines, non-human capital aspects of the businesses appear more stable than human capital aspects. In the cross-section, firms with more alienable assets have substantially more human capital turnover.

Keywords: entrepreneurship; Theory of the firm; Venture capital (search for similar items in EconPapers)
JEL-codes: D21 D23 G24 (search for similar items in EconPapers)
Date: 2005-09
New Economics Papers: this item is included in nep-bec, nep-ent, nep-fin and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: What are Firms? Evolution from Birth to Public Companies (2005)
Working Paper: What Are Firms? Evolution from Birth to Public Companies (2005)
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