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

Arturo Haro- de-Rosario (), María del Carmen Caba-Pérez () and Leonardo Cazorla-Papis ()
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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, 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
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