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Venture capital and new business creation

Listed author(s):
  • Popov, Alexander
  • Roosenboom, Peter

Using a comprehensive database of firms from 21 European countries over the period 1998–2008, we find that venture capital investment has a positive effect on the rate of new business creation. This is especially true in countries with higher entry costs, higher protection of intellectual property rights, and lower taxes on capital gains. Our results suggest that, controlling for country and industry characteristics, venture capital is beneficial to bringing new ideas to the marketplace in the shape of new companies.

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File URL: http://www.sciencedirect.com/science/article/pii/S0378426613003415
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Article provided by Elsevier in its journal Journal of Banking & Finance.

Volume (Year): 37 (2013)
Issue (Month): 12 ()
Pages: 4695-4710

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Handle: RePEc:eee:jbfina:v:37:y:2013:i:12:p:4695-4710
DOI: 10.1016/j.jbankfin.2013.08.010
Contact details of provider: Web page: http://www.elsevier.com/locate/jbf

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