How Does Governmental versus Private Venture Capital Backing Affect a Firm's Efficiency? Evidence from Belgium

Posted: 28 Mar 2015 Last revised: 19 May 2015

See all articles by Yan Alperovych

Yan Alperovych

EMLYON Business School

Georges Hübner

HEC Liège

Fabrice Lobet

Vrije Universiteit Brussel (VUB)

Date Written: November 19, 2014

Abstract

We investigate the implications of venture capital (VC) investor type (government or private) on the operating efficiency of a sample of 515 Belgian portfolio firms up to 3 years after the investment. We find that the government VC-backed firms display significant reductions in productivity. No significant differences in efficiency are found in firms backed by private VC compared with their non-VC-backed peers. Finally, significant reductions in efficiency exist in targets of government VC compared to their non-VC-backed peers.

Keywords: Venture capital; Efficiency; Data envelopment analysis; Fund type; Public investor

JEL Classification: G24, G30, M13, O16

Suggested Citation

Alperovych, Yan and Hübner, Georges and Lobet, Fabrice, How Does Governmental versus Private Venture Capital Backing Affect a Firm's Efficiency? Evidence from Belgium (November 19, 2014). Journal of Business Venturing 30 (2015) 508-525, Available at SSRN: https://ssrn.com/abstract=2585553

Yan Alperovych (Contact Author)

EMLYON Business School ( 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)

Fabrice Lobet

Vrije Universiteit Brussel (VUB) ( email )

Pleinlaan 2
http://www.vub.ac.be/
Brussels, 1050
Belgium

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