Explaining Returns on Venture Capital-Backed Companies: Evidence from Belgium

Research in International Business and Finance 25 (2011) 277–295

Posted: 23 Dec 2014

See all articles by Yan Alperovych

Yan Alperovych

EMLYON Business School; EMLYON Business School - Research Centre for Entrepreneurial Finance

Georges Hübner

HEC Liège

Date Written: February 14, 2011

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.

Keywords: Venture Capital, Return, Strategy, Entrepreneurship, Life Cycle, Compatibility

JEL Classification: L22, L25, M13, G30

Suggested Citation

Alperovych, Yan and Hübner, Georges, Explaining Returns on Venture Capital-Backed Companies: Evidence from Belgium (February 14, 2011). Research in International Business and Finance 25 (2011) 277–295. Available at SSRN: https://ssrn.com/abstract=2510542

Yan Alperovych (Contact Author)

EMLYON Business School ( email )

23 Avenue Guy de Collongue
Ecully, 69132
France

EMLYON Business School - Research Centre for Entrepreneurial Finance ( email )

23 Avenue Guy de Collongue
Ecully, 69132
France

Georges Hübner

HEC Liège ( email )

Rue Louvrex 14, Bldg. N1
Liege, 4000
Belgium
+32 42327428 (Phone)

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