The globalization of angel investments: Evidence across countries
Name
Schoar_The globalization of angel.pdf
Description
Submitted version
Size
877.11 KB
Format
Adobe PDF
Checksum (MD5)
000c2347ffdcbee6601b9acb3e36ad4a
Author(s)
Lerner, Josh
Schoar, Antoinette
Sokolinski, Stanislav
Wilson, Karen
Date Issued
May 2017
Journal
Journal of Financial Economics
Publisher
Elsevier BV
Citation
Lerner, Josh et al. "The globalization of angel investments: Evidence across countries." Journal of Financial Economics 127, 1 (January 2018): 1-20. © 2017 Elsevier B.V.
Version
Original manuscript
Abstract
This paper examines the role of investments by angel groups across a heterogeneous set of 21 countries with varying entrepreneurship ecosystems. Exploiting quasi-random assignment of deals around the groups’ funding thresholds, we find a positive impact of funding on firm growth, performance, survival, and follow-on fundraising, which is independent of the level of venture activity and entrepreneur-friendliness in the country. However, the maturity of startups that apply for funding (and are ultimately funded) inversely correlates with the entrepreneurship-friendliness of the country. This may reflect self-censoring by early-stage firms that do not expect to receive funding in these environments.
MIT Department
Sloan School of Management
Terms of Use
Creative Commons Attribution-NonCommercial-NoDerivs License
Persistent DSpace Link
DOI of Published Version
https://doi.org/10.1016/j.jfineco.2017.05.012
