The effect of venture capital backing on innovation in newly public firms

IF 2.1 2区经济学 Q2 BUSINESS, FINANCE

Journal of Empirical Finance Pub Date : 2023-10-25 DOI:10.1016/j.jempfin.2023.101436

Serdar Aldatmaz , Ugur Celikyurt

引用次数: 0

Abstract

We study the effect of VC-backing on innovation in newly public firms and find that it is negatively related to patents produced and citations received within the initial years following an IPO – our estimates indicate that VC-backed firms produce 13% fewer patents than nonVC-backed firms within the first year post-IPO. Our findings suggest that this adverse effect is a consequence of VCs timing their portfolio companies’ IPOs at the peak of innovation followed by a decline post-IPO. Additionally, VC-backing leads to higher growth in sales and productivity in newly public firms pointing to a shift in VC focus from creating into commercializing innovation post-IPO. We address endogeneity concerns with an instrumental variables approach.

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风险投资支持对新上市公司创新的影响

我们研究了风投支持对新上市公司创新的影响，发现它与IPO后最初几年的专利产量和引用量呈负相关——我们的估计表明，在IPO后的第一年，风投支持的公司的专利产量比非风投支持的公司少13%。我们的研究结果表明，这种不利影响是风险投资公司将其投资组合公司的ipo选择在创新高峰期，随后在ipo后下降的结果。此外，风投支持导致新上市公司的销售额和生产率更高的增长，这表明风投的重点从创造转向商业化创新。我们用工具变量的方法来解决内生性问题。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Empirical Finance Multiple-

CiteScore

3.40

自引率

3.80%

发文量

期刊介绍： The Journal of Empirical Finance is a financial economics journal whose aim is to publish high quality articles in empirical finance. Empirical finance is interpreted broadly to include any type of empirical work in financial economics, financial econometrics, and also theoretical work with clear empirical implications, even when there is no empirical analysis. The Journal welcomes articles in all fields of finance, such as asset pricing, corporate finance, financial econometrics, banking, international finance, microstructure, behavioural finance, etc. The Editorial Team is willing to take risks on innovative research, controversial papers, and unusual approaches. We are also particularly interested in work produced by young scholars. The composition of the editorial board reflects such goals.