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on Corporate Finance |
| By: | Eichenauer, Vera; Köppl, Stefan; Köppl-Turyna, Monika |
| Abstract: | In this paper we analyze the effects of investment screening on cross-border venture capital investments in Europe between 2007 and 2022. The data we work with is originally based on PRISM data which has been extended by Eichenauer and Wang and which we combine with deal data from Preqin to assess investment activity. Our results point to unintended negative effects: while the number of actually blocked deals has remained very low, the associated uncertainty and an increase in transaction costs have led to a significant decline in cross-border deals. The effects are stronger in the case of financial (i.e. "non-strategic") investors, for late-stage venture capital deals, and for deals with investors from non-OECD countries. Moreover, we observe changes in the size of deals and their structure. This has profound policy implications for the financing of innovation in Europe. |
| Keywords: | cross-border venture capital, investment screening, Europe, transaction costs |
| JEL: | F55 F21 G24 L14 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifwkwp:313651 |
| By: | Jan Behringer (Macroeconomic Policy Institute (IMK)); Till van Treeck (University of Duisburg-Essen); Vincent Victor (University of Duisburg-Essen) |
| Abstract: | This paper investigates the role of family firms in the fall of the labor share and rise in corporate saving in Germany from 1993 to 2019. Combining a new Family Ownership and Governance (FOG) database with financial data, we analyze 929 publicly listed firms. Our findings show that firm-level labor share declines are widespread in Germany, contrasting with findings from the U.S. that link this trend to a few fast-growing superstar firms. Family firms, particularly in manufacturing, experienced sharper decreases in the labor share and stronger increases in corporate saving compared to non-family firms. The level of family involvement in Germany's two-tier board system (management and supervisory board) further affects these outcomes. Despite paying lower wages, we find no evidence that family firms provide greater employment stability. Our results challenge global generalizations about the drivers of the labor share and corporate saving, while emphasizing the macroeconomic relevance of family firms, especially in Germany's corporate sector. |
| Keywords: | Labor share, corporate saving, family firms |
| JEL: | D22 D33 G32 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:imk:fmmpap:115-2025 |
| By: | Bettina Bruggemann; Zachary L. Mahone; Thomas Palmer |
| Abstract: | Ownership changes are common across firms of all sizes, and they have meaningful impacts on firm performance. Using a panel of Canadian administrative data we document that sales are an important margin in the firm life cycle, larger than exit rates for employer firms. Applying an event-study framework, we find that (a) survival rates initially decline post sale, leveling off after three years and (b) conditional on survival, profits are permanently higher. Embedding ownership changes in a model of firm dynamics, we find that 4.5% of entrants survive due to the option value of sale and that, within ten years from birth, 13% of dispersion in firm size is attributable to realized ownership changes. Moreover, ownership changes are particularly important for high productivity firms, accounting for one quarter of revenue concentration among the top 1% of businesses. |
| Keywords: | Firm Dynamics; Ownership Changes; Firm Concentration |
| JEL: | E0 L25 D22 M13 G30 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:mcm:deptwp:2025-03 |
| By: | Hung, Dang Ngoc |
| Abstract: | This paper investigates the impact of capital structure on business performance of Vietnamese enterprises during the Covid-19 pandemic. The study focuses on key performance indicators such as return on total assets (ROA), return on equity (ROE), and earnings per share (EPS). The analysis employs the table data regression method using a dataset comprising 5747 enterprise observations for the period of 2019 to 2022. The findings indicate that capital structure has a significant negative influence on the business performance of Vietnamese enterprises. Moreover, the study highlights the substantial effect of capital structure on business performance when considering different aspects and debt structures, particularly within the framework of the Covid-19 pandemic. Based on these research findings, the article recommends that business administrators carefully consider the optimal capital structure to enhance business efficiency, especially given the unpredictable nature of the Covid-19 pandemic |
| Date: | 2024–01–05 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:84dae_v1 |
| By: | Laurikka, Annu |
| Abstract: | Abstract The study examines the relationship between firm size and its management’s subjectively perceived growth constraints and financing limitations. Additionally, it explores Finland’s business size dynamics and their development from 2008 to 2022. The results indicate that company size transitions are rare, with most businesses remaining in their original size category. However, growth potential is particularly identified in medium-sized and Mittelstand companies. Heavy regulation and administrative obligations are the most commonly reported barriers to growth. Furthermore, up to half of Mittelstand and large companies report growth barriers due to higher cost levels compared to competitors. A more detailed analysis shows that company size, when measured by the number of employees, has only a limited effect on growth barriers. Differences become clearer when measured by revenue, though ownership structure, growth ambition, and industry are also significantly associated with many growth barriers. Small businesses more frequently face constraints related to debt aversion, capacity limitations, sales and marketing challenges, and finding skilled labor. Financial barriers do not vary significantly across company sizes, but larger companies are less frequently hindered by the availability of debt and equity financing for investments compared to smaller businesses. |
| Keywords: | Business growth, Growth barriers, Financial constraints, Company size dynamics, Mittelstand companies |
| JEL: | L11 L20 L21 L25 L53 D22 |
| Date: | 2025–03–05 |
| URL: | https://d.repec.org/n?u=RePEc:rif:report:160 |