Below we have listed the latest papers by our members.


Determinants of Venture Capital Investments in Emerging Markets

GROH, Alexander and WALLMEROTH, Johannes

Link to article to follow.


Private Equity Growth in International Emerging Markets

GROH, Alexander

To view the abstract and/or download this working paper, please visit this link


Same Rules, Different Enforcement: Market Abuse in Europe

CUMMING, Douglas J.; GROH, Alexander; and JOHAN, Sofia

To view the abstract and/or download this paper, please visit this link


How (In)efficient is Public Venture Capital? Evidence from Belgium


Working abstract (subject to modifications): Using the dataset of 515 SMEs, which received venture capital financing during the period 1998-2007, and a carefully constructed control sample this study sheds new light on the implications of investor type on efficiency patterns of Belgian entrepreneurial SMEs during first 3 years after the initial capital injection. There are three main findings. First, we observe increases in efficiency of venture capital-backed firms. Firms financed by private funds show higher efficiency levels and changes relative to their publicly-backed peers. Second, regression analyses indicate that for venture capital-backed firms public backing translates into statistically and economically significant reductions of efficiency. Finally, venture capital in general does not imply better efficiency patterns of the portfolio firms in comparison to their non-venture-backed peers. At the very least, better efficiency with respect to the control group might be observed for the privately-backed SMEs.


Cross-Border Investments and Venture Capital Exits in Europe

BERTONI, Fabio and GROH, Alexander

To view the abstract and/or download this paper, please visit this link


Active Hot Hands Investors vs. 'The Crowd': Trading-Off Investment Horizon, Support Quality and the Allocation of Control Rights in Entrepreneurial Finance

ANDRIEU, Guillaume and GROH, Alexander

To view the abstract and/or download this paper, please visit  this link


What the Dynamics of Capital Intensity May Tell Us About the Value Enhancement by Venture Capital

BERTONI, Fabio; CROCE, Annalisa; and QUAS, Anita

Using a continuous-time model of company's capital investment, we show that different dimensions of value enhancement performed by venture capital (VC) translate in distinct short-term and long-term changes in the level of investee company’s capital intensity. This intuition is translated in an econometric model testing indirectly for value enhancement activities by VC.


Patterns of Venture Capital investment in Europe

BERTONI, Fabio; COLOMBO, Massimo G.; and QUAS, Anita

We study the investment strategies of different types of venture capital (VC) investors in Europe. We rely on a unique dataset including 1,663 first VC investments made between 1994 and 2004 by 846 investors in 737 young high-tech entrepreneurial ventures in seven European countries. We analyze the relative investment specialization of 4 different VC types: independent VC, corporate VC, bank-affiliated VC and governmental VC. We study investment specialization along several dimensions characterizing the investments (syndication, duration and exit mode) and the investee companies (industry of operation, age, size, development stage, location and distance from investor’s premises). Our findings indicate that VC types in Europe differ markedly in their patterns of investment specialization, especially governmental VC compared to all other VC investors. Moreover, the investment strategies of independent VC investors in Europe are markedly different from those in the USA.


Government venture capital in Europe: screening and certification

GUERINI, Massimiliano and QUAS, Anita

This paper investigates whether governmental venture capital (GVC) facilitates private venture capital (PVC) investments in high-tech entrepreneurial ventures. Using a sample of 194 European GVC-backed high-tech entrepreneurial ventures and a matched sample of 780 non GVC-backed firms, we test whether GVC increases entrepreneurial ventures’ probability of attracting PVC. Furthermore, we test whether PVC investments in GVC-backed entrepreneurial ventures are at least as successful as PVC investments in other firms (i.e. in non GVC-backed entrepreneurial ventures), by estimating the probability of receiving a second round of PVC and of achieving a successful exit (IPO or M&A). Results show that GVC-backed entrepreneurial ventures are more likely to receive a first round of PVC than the matched sample. In addition, we document that after the first round of PVC, GVC-backed entrepreneurial ventures are more likely to receive a second round of PVC and to achieve a successful exit. We interpret these results as a positive evidence of the ability of GVC to screen promising entrepreneurial ventures and to certify them to PVC.


Venture capital and the employment policy of young high-tech firms 

BERTONI, Fabio; CROCE, Annalisa; and QUAS, Anita

In this paper we investigate how Venture Capital (VC) affects the sensitivity of young high-tech firms’ employment policies to the availability of internal capital, by alleviating their financial constraints. We base our study on a sample of 4,681 companies in 6 European countries. Building on a model developed to study firm’s investment cash flow sensitivity, we find that the sign of the employment cash flow sensitivity (ECFS) depends on the ability of the firm to generate internal capital. Moreover, we observe that ECFS is stronger for smaller firms. VC proves to be able to relax firm’s ECFS only when firms produce positive cash flows. Finally, VC improves the ability of young high-tech companies to attract high-skilled labor, especially when ECFS is most pronounced.