Financing sustainable entrepreneurship: ESG measurement, valuation, and performance

Sasan Mansouri and Paul P. Momtaz

Journal of Business Venturing, 2022, vol. 37, issue 6

Abstract: Sustainability orientation has a positive effect on startups' initial valuation and a negative effect on their post-funding financial performance. All else equal, improving sustainability orientation by one standard deviation increases startups' funding amount by 28 % and decreases investors' abnormal returns per post-funding year by 16 %. The results hold in a large sample of blockchain-based crowdfunding campaigns, also known as Initial Coin Offerings (ICOs) or token offerings. A key contribution is a machine-learning approach to assess startups' Environment, Society and Governance (ESG) properties from textual data, which we make readily available at www.SustainableEntrepreneurship.org.

Keywords: Sustainable entrepreneurship; Sustainability orientation; ESG; Token offering; Initial coin offering (ICO); Blockchain-based crowdfunding; Entrepreneurial finance; Machine learning (search for similar items in EconPapers)
JEL-codes: L26 M13 Q01 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbvent:v:37:y:2022:i:6:s0883902622000702

DOI: 10.1016/j.jbusvent.2022.106258

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