Productivity Growth in Spanish Venture-Backed Firms

VENTURE CAPITAL IN EUROPE, G. Gregoriou, M. Kool, R. Kraeussl, eds., Ch. 7, Elsevier, October 2006

Posted: 29 Jan 2008 Last revised: 14 Oct 2011

José Martí

Complutense University of Madrid - Departamento de Economia Financiera

Luisa Alemany

ESADE Business School

Abstract

This chapter presents an innovative proposal to analyze the economic impact of venture capital on investee companies to address the issue of causality. We test whether productivity growth rates are better in venture-backed companies than in comparable non-venture-backed ones for a sample of 518 Spanish companies. This approach is superior to the isolated analysis of employment or sales growth since venture-backed companies would benefit from a flow of funds that the non-venture-backed would not obtain. Our findings show that labor productivity gains are statistically higher in the venture group for industry, trade and services sectors. Regarding capital productivity growth, rates are statistically significant in all sectors except for raw materials.

Keywords: venture capital, private equity, productivity, economic impact

JEL Classification: G24, M13, O31

Suggested Citation

Martí, José and Alemany, Luisa, Productivity Growth in Spanish Venture-Backed Firms. VENTURE CAPITAL IN EUROPE, G. Gregoriou, M. Kool, R. Kraeussl, eds., Ch. 7, Elsevier, October 2006. Available at SSRN: https://ssrn.com/abstract=1087954

José Martí Pellón

Complutense University of Madrid - Departamento de Economia Financiera ( email )

Carretera de Humera s/n
Madrid 28223, Madrid 28223
Spain
+ 3491 3942310 (Phone)
+ 34 91 3942534 (Fax)

Luisa Alemany (Contact Author)

ESADE Business School ( email )

Av. de Pedralbes, 60-62
Barcelona, 08034
Spain

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