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
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
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