Survival of the Funded? An Econometric Analysis of New-Firm Survival and Success

Colorado College Working Paper 2019-01 June 2019

24 Pages Posted: 19 Jun 2019

See all articles by Dan

Dan

Colorado College - Department of Economics and Business

Daniel K. N. Johnson

Colorado College - Department of Economics and Business; NAACP Legal Defense and Educational Fund

Date Written: June 12, 2019

Abstract

The purpose of this study is to evaluate how different founder and firm characteristics affect new venture performance. This research uses survival proportional hazard functions and limited-information maximum likelihood instrumental regressions to quantify the marginal effects of capitalization choices on revenues and employment. Panel data analysis on 4,298 new firms shows that financing strategy matters, especially in combination with particular human and social capital attributes of the founders.

Keywords: Business Survival, Revenues, Venture Financing, Human Capital, Competitive Advantage, New Ventures, Firm Performance

JEL Classification: L25, L26, J24

Suggested Citation

Keogh, Daniel and Johnson, Daniel Kent Neil, Survival of the Funded? An Econometric Analysis of New-Firm Survival and Success (June 12, 2019). Colorado College Working Paper 2019-01 June 2019, Available at SSRN: https://ssrn.com/abstract=3402779 or http://dx.doi.org/10.2139/ssrn.3402779

Daniel Keogh

Colorado College - Department of Economics and Business ( email )

14 E Cache La Poudre Street
Colorado Springs, CO 80903
United States

Daniel Kent Neil Johnson (Contact Author)

Colorado College - Department of Economics and Business ( email )

14 E Cache La Poudre Street
Colorado Springs, CO 80903
United States
719-389-6654 (Phone)
719-389-6927 (Fax)

HOME PAGE: http://faculty1.coloradocollege.edu/~djohnson

NAACP Legal Defense and Educational Fund ( email )

40 Rector St.
5th Floor
New York, NY 10006
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
139
Abstract Views
628
Rank
374,934
PlumX Metrics