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Explaining returns on venture capital backed companies: Evidence from Belgium

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  • Alperovych, Yan
  • Hübner, Georges

Abstract

Using a unique database of 990 VC-backed Belgian firms, we study whether compatibility between corporate and environmental characteristics matters. We address two questions: (i) Does the interplay of company, industry, and product factors affect the expected returns of the VC-backed firms? (ii) Does the joint compatibility between these factors results in a non-linear increase in performance? Panel data analysis shows a significant influence of factor compatibility on returns. Quantile regression analysis indicates a non-linear relationship between the return and its determinants. Conjoint analysis identifies certain combinations of factors, which collapse into classifiable patterns described in the strategic management literature.

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Bibliographic Info

Article provided by Elsevier in its journal Research in International Business and Finance.

Volume (Year): 25 (2011)
Issue (Month): 3 (September)
Pages: 277-295

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Handle: RePEc:eee:riibaf:v:25:y:2011:i:3:p:277-295

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Web page: http://www.elsevier.com/locate/ribaf

Related research

Keywords: Venture capital Return Strategy Entrepreneurship Life cycle Compatibility;

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