The Eureka Repository is closing down and will not be available after the end of 2019. All publications from current Faculty have now been migrated to Symplectic Elements. See the Sainsbury Library Blog for more information. ×

Foreign investors and domestic company growth: Evidence from US venture capital investments in Sweden

Hellmann, Thomas, Montag, Alexander and Joacim, Tåg (2019) Foreign investors and domestic company growth: Evidence from US venture capital investments in Sweden. Saïd Business School Working Paper.

[img]
Preview
PDF
Download (513kB) | Preview

Abstract

Do foreign venture capitalists help the domestic economy, or hamper it by slowing down growth, potentially moving economic activity away? This paper addresses this long-standing policy question by examining the differential effects of US venture capital investments on the growth of Swedish start-up companies. It finds that US venture capital results in more employment, not less. These findings continue to hold after controlling for endogenous selection effects. US investments are also accompanied by increases in local employment and start-up rates. The paper also examines effect on wages, sales, earnings, foreign subsidiaries, subsequent funding rounds, and exits. Overall there is no evidence that US venture capital investments hamper the domestic growth of Swedish companies.

Item Type: Oxford Saïd Research Paper
Date Deposited: 11 Apr 2019 13:10
Last Modified: 23 Apr 2019 15:06
Funders: n/a
URI: http://eureka.sbs.ox.ac.uk/id/eprint/7362

View statistics

Actions (login required)

Edit View Edit View