1,720,988 research outputs found
SMEs and patents: Is it worth it? A longitudinal analysis of the patent-performance relationship
Full text linkIn response to scepticism about the benefits of patenting in small firms, this paper provides new evidence on the relationship between financial performance in SMEs and patents, distinguishing between applications and granted patents. Empirical analyses show that firms with a patent application still pending five years after the filing date report higher sales than comparable firms who have not filed. Yet, we also find that the monopoly rights attached to granted patents do not result in higher sales than simply filing for a patent. This analysis leads us to infer that the activities performed during the patent application process improve firm knowledge stocks and absorptive capacity, in turn promoting performance above and beyond the status quo. SME managers should find in this study solid empirical evidence supporting well-informed decision-making over patenting
Prior co-investments and exits: a study on European venture capital syndicates
Full text linkBuilding on recent developments in the literature, we investigated whether the practice of repeatedly investing with the same partners impacts outcomes for venture capital syndicates. Research shows that European venture capitalists have different attitudes to their American counterparts, which might result in a different ability in benefiting from prior co-investing activities. Hence, we analysed how successful prior collaborations and the concentration of prior ties in an investment syndicate affects the probability of successfully exiting an investment. We also examined the role of prior ties as a determinant of the time to successful exit. From an analysis of 922 first-ever syndicated rounds in Europe between 2000 and 2009, we find that prior ties are not a significant determinant of successful exits. However, prior successful collaborations do play a significant role, as does the concentration of prior ties. We also find that a U-shaped relationship links prior co-investments with the to time to exit. These results should be helpful for managers involved in inter-organisational investment collaborations and to policymakers looking for ways to spur the European venture capital ecosystem
Do Patents Affect SMEs’ Performance? A Counterfactual Analysis
No full textThis study analyses the causal effect between innovation and performance on a sample of about 5.000 Italian SMEs. Results of studies on the effects of innovation on SMEs performance are controversial: even if several studies find a positive relationship, restricting the analysis to small and medium firms previous literature does not find a clear correlation between patents and SMEs performance. Using patents as a proxy of innovative activity, we aim at providing further evidence on this topic analysing a large sample of firms. We investigate the firms’ dynamics after the filing date taking into consideration return on assets, sales growth and operating profit margin as proxies for firms’ performance. In particular, we combine two econometric methodologies in order to reduce the risk of biased results. We select a control sample through a propensity score matching, and on these two groups we perform a difference-in-differences analysis. We also take into account firm size, ownership, and the effort to co-patent with other firms and university as moderating factors of the link between innovation and performance. Our preliminary results reveal a positive relationship between patents and firm growth, but an insignificant effect on profit margins. The collaborative effort in patenting does not seem related to specific patterns in firm dynamics when compared to other innovative firms
Do Patents Affect SMEs’ Performance? A Counterfactual Analysis
No full textThis study analyses the causal effect between innovation and performance on a sample of about 5.000 Italian SMEs. Results of studies on the effects of innovation on SMEs performance are controversial: even if several studies find a positive relationship, restricting the analysis to small and medium firms previous literature does not find a clear correlation between patents and SMEs performance. Using patents as a proxy of innovative activity, we aim at providing further evidence on this topic analysing a large sample of firms. We investigate the firms’ dynamics after the filing date taking into consideration return on assets, sales growth and operating profit margin as proxies for firms’ performance. In particular, we combine two econometric methodologies in order to reduce the risk of biased results. We select a control sample through a propensity score matching, and on these two groups we perform a difference-in-differences analysis. We also take into account firm size, ownership, and the effort to co-patent with other firms and university as moderating factors of the link between innovation and performance. Our preliminary results reveal a positive relationship between patents and firm growth, but an insignificant effect on profit margins. The collaborative effort in patenting does not seem related to specific patterns in firm dynamics when compared to other innovative firms
Going Public During a Pandemic: SPACs vs IPOs
No full textThe listing of a company through a Special Purpose Acquisition Company (SPAC) can offer several benefits compared to the traditional IPO process. However, there is no evidence on whether macroeconomic factors affect the choice between SPACs and IPOs. To fill this gap, we study a global sample of 7,953 observations over 18 years, finding that the share of SPACs is negatively correlated with long-term interest rates. We also found that market sentiment has a strong positive impact on the share of SPACs, while market performance and market development do not have a significant effect. During the pandemic, listing with a SPAC was more likely, as companies prioritised speed and took advantage of market opportunities, particularly in the Technology and Healthcare sectors
Talk or walk? The board of directors and firm environmental strategies
Full text linkDrawing on legitimacy theory, we study the nexus between green communication and the implementation of green practices, and in particular, we focus on the determinants of their discrepancy. Based on a large sample of firms in 58 countries over a 19-year period, we employ an index to measure the discrepancy between green operations and the communicated practices, mapped to each firm's board structure. The results provide the first empirical evidence that larger, more gender-diverse, and more independent boards are associated with a preponderance of green communication over implementation. We interpret this imbalance as a strategy to participate in the public discourse to gain moral legitimacy. Conversely, CEO duality is associated with a discrepancy in the opposite direction, with firms focusing more on implementing green practices than talking about them, suggesting that these firms aim mainly at gaining pragmatic legitimacy from their stakeholders
Innovation, asymmetric information and the capital structure of new firms
Full text linkStart-ups are essential contributors to economic development, but they often face several barriers to growth, including access to finance. We study their capital structure in their early years of operation through the lens of Pecking Order Theory, exploring how the pursuit of innovation influences firms’ reliance on different types of finance. Panel analyses of 8273 German start-ups show that innovation activities are relevant predict start-ups’ revealed preferences for finance. Effects on the type and order of financing sources depend on the degree of information asymmetries specific to research and development activities, human capital endowments, and the market introduction of new products and processes. New firms focused on research and development activities and with better human capital are less likely to receive informationally complex finance such as debt and will rely relatively more on owner and equity finance. Mixed evidence is found, instead, on the role of new products or processes. Our results suggest that the traditional pecking order theory does not hold for new firms, implying that owner and external equity play a much more prominent role for such firms. Then, managers and entrepreneurs should consider specific sources of finance and financial instruments in light of their innovative activities
Board of Directors' characteristics and environmental SDGs adoption: an international study
Full text linkDrivers of environmentally conscious firm behaviour have gained increasing attention over past decades. The Board of Directors holds a central role in corporate decision-making, and previous empirical evidence suggests that its characteristics could influence corporate environmental performance. This paper contributes to the literature with the first evidence of the influence certain board characteristics have on whether a firm ultimately supports one or more environmental SDGs. Our focus is on board size, gender diversity, board independence and CEO duality. Logistic and fractional regressions on 4417 globally listed firms highlight that board size, the share of female directors, and the share of independent directors are significant drivers of support for environmental SDGs. The results and insights revealed in this study should be helpful to policymakers, investors and corporations in evaluating the effectiveness of corporate governance characteristics and fostering corporate contributions to the 2030 Agenda
- …
