Current Science

Open Access Open Access  Restricted Access Subscription Access

Alternative Equity Financing Instruments for Entrepreneurial Ventures:A Bibliometric Analysis of Research in the Last Three Decades


Affiliations
1 Department of Accounting and Finance, Technical University of Cartagena, c/Real, 3, E-30201 Cartagena, Spain
 

This study aims to review scientific research in business economics related to entrepreneurial equity financing carried out in the last three decades (1984–2017) using a bibliometric analysis. To this end, 1321 documents on this topic were extracted from the Web of Science database and sorted according to the following perspectives: number of publications per year, the most cited articles, most eminent authors, journals with the highest citation per article, and countries with the highest productivity. Our research also provides clusters based on a co-occurrence analysis of keywords in order to identify the major themes investigated. Our results can be used to improve our understanding of the entrepreneurial equity financing field and identify promising research areas to further explore in the future.

Keywords

Bibliometrics, Business Angels, Citation Analysis, Equity Crowdfunding, Entrepreneurship, Venture Capital.
User
Notifications
Font Size

  • Criscuolo, C., Gal, P. N. and Menon, C., The Dynamics of Employment Growth: New Evidence from 18 Countries, OECD Science, Technology and Industry Policy Papers No. 14, OECD Publishing, Paris. 2014.

  • Binks, M. R., Ennew, C. T. and Reed, G. V., Information asymmetries and the provision of finance to small firms. Int. Small Bus. J., 1992, 11(1), 35–46.

  • Carpenter, R. E. and Petersen, B. C., Capital market imperfections, high-tech investment, and new equity financing. Econ. J., 2002, 112, F54–F72.

  • Drover, W., Busenitz, L., Matusik, S., Townsend, D., Anglin, A. and Dushnitsky, G., Venture capital, corporate venture capital, angel investment, crowdfunding and accelerators: a review and roadmap of entrepreneurial equity financing research. J. Manage., 2017, 43(6), 1820–1853.

  • López-Fernández, M. C., Serrano-Bedia, A. M. and Pérez-Pérez, M., Entrepreneurship and family firm research: a bibliometric analysis of an emerging field. J. Small Bus. Manage., 2016, 54(2), 622–639.

  • Albort-Morant, G. and Ribeiro-Soriano, D., A bibliometric analysis of international impact of business incubators. J. Bus. Res., 2016, 69(5), 1775–1779.

  • Dzikowski, P., A bibliometric analysis on born global firms. J. Bus. Res., 2018, 85, 281–294.

  • Hausberg, J. P. and Korreck, S., Business incubators and accelerators: a co-citation analysis-based, systematic literature review. J. Technol. Transfer., 2018, forthcoming; https://doi.org/10.1007/ s10961-018-9651-y.

  • Jensen, M. C. and Meckling, W. H., Theory of the firm: managerial behavior, agency costs and ownership structure. J. Financ. Econ., 1976, 3, 305–360.

  • Berger, A. N. and Udell, G. F., The economics of small business finance : the roles of private equity and debt markets in the financial growth cycle. J. Bank Financ., 1998, 22, 613–673.

  • Bertoni, F., Ferrer, M. A. and Martí, J., The different roles played by venture capital and private equity investors on the investment activity of their portfolio firms. Small Bus. Econ. Group., 2013, 40, 607–633.

  • Gompers, P. and Lerner, J., The Venture Capital Cycle, Cambridge MA, MIT Press, 2006, 2nd edn.

  • Gorman, M. and Sahlman, W. A., What do venture capitalists do? J. Bus. Ventur., 1989, 4, 231–248.

  • Lerner, J., Venture capitalists and the oversight of private firms. J. Financ., 1995, 50(1), 301–318.

  • Sahlman, W. A., The structure and governance of venture-capital organizations. J. Financ. Econ., 1990, 27, 473–521.

  • Sapienza, H. J., When do venture capitalists add value? J. Bus. Ventur., 1992, 7, 9–27.

  • Sørensen, M., How smart is smart money? A two-sided matching model of venture capital. J. Financ., 2007, 62, 2725–2762.

  • Amit, R., Brander, J. and Zott, C., Why do venture capital firms exist? Theory and Canadian evidence. J. Bus. Ventur., 1998, 13, 441–446.

  • Chan, Y. S., On the positive role of financial intermediation in allocation of venture capital in a market with imperfect information. J. Financ., 1983, 38(5), 1543–1568.

  • Tyebjee, T. T. and Bruno, A. V., A model of venture capitalist investment activity. Manage. Sci., 1984, 30, 1051–1066.

  • Admati, A. R. and Pfleiderer, P., Robust financial contracting and the role of venture capitalists. J. Financ., 1994, 49, 371– 402.

  • Kaplan, S. and Strömberg, P., Financial contracting theory meets the real world: evidence from venture capital contracts. Rev. Econ. Stud., 2003, 70(2), 281–315.

  • Mitchell, F., Reid, G. C. and Terry, N. G., Venture capital supply and accounting information system development. Entrep. Theory Pract., 1997, 21, 45–62.

  • Megginson, W. L. and Weiss, K. A., Venture capitalist certification in initial public offerings. J. Financ., 1991, 46, 879– 903.

  • Harrison, R. T. and Mason, C. M., Annual Report on the Business Angel Market in the United Kingdom, 2008/09, June 2010.

  • Sohl, J. E., The early stage equity market in the United States. Venture Capital: Int. J. Entrepren. Fin., 1999, 1, 101–120.

  • Kerr, W. R., Lerner, J. and Schoar, A., The consequences of entrepreneurial finance: a regression discontinuity analysis. Rev. Financ. Stud., 2014, 27, 20–55.

  • Capizzi, V., The returns of business angel investments and their major determinants. Venture Capital: An International Journal of Entrepreneurial Finance, 2015. 17(4), 271–298.

  • Lerner, J., Schoar, A., Sokolinski, S. and Wilson, K., The globalization of angel investments: evidence across countries. HBS Working Paper, 2016, 16-072.

  • Levratto, N., Tessier, L. and Fonrounge, C., Business performance and angels presence: a fresh look from France 2008–2011. Small Bus. Econ. Group, 2018, 50(2), 339–356.

  • Hellman, T., Schure, P. and Vo, D., Angel and venture capitalists: complements or substitutes? NBER Working Paper, 2013.

  • Mason, C. M., Botelho, T. and Harrison, R. T., The transformation of the business angel market: empirical evidence and research implications. Venture Capital: Int. J. Entrepren. Fin., 2016, 19(4), 321–344.

  • Tuomi, K. and Harrison, R. T., A comparison of equity crowdfounding in four countries: Implications for business angels. Strat. Change, 2017, 26(6), 609–615.

  • Ahlers, G. K., Cumming, D., Günther, C. and Schweizer, D., Signaling in equity crowdfunding. Entrep. Theory Pract., 2015, 39, 955–980.

  • Agrawal, A., Catalini, C. and Goldfarb, A., Are syndicates the killer app of equity crowdfunding? Calif. Manage. Rev., 2016, 58, 111– 124.

  • Allison, T. H., Davis, B. C., Short, J. C. and Webb, J. W., Crowdfunding in a prosocial microlending environment: examining the role of intrinsic versus extrinsic cues. Entrep. Theory Pract., 2015, 39, 53–73.

  • Vulkan, N., Åstebro, T. and Sierra, M. F., Equity crowdfunding: a new phenomena. J. Bus. Ventur. Insights, 2016, 5, 37–49.

  • Cumming, D. J. and Vismara, S., De-segmenting research in entrepreneurial finance. Venture Capital: Int. J. Entrepren. Fin., 2017, 19(1/2), 17–27.

  • de Bellis, N., Bibliometrics and Citation Analysis: From the Science Citation Index to Cybermetrics, Scarecrow Press, Lanham, MD, 2009.

  • Cobo, M. J., López-Herrera, A. G., Herrera-Viedma, E. and Herrera, F., Science mapping software tools: review, analysis, and cooperative study among tools. J. Am. Soc. Inf. Sci. Technol., 2011, 62(7), 1382–1402.

  • Cadavid-Higuita, L., Awad, G. and Franco-Cardona, C., Un análisis bibliométrico de un campo de modelado para la difusión de la innovación. Estudios Gerenciales, 2012, 28, 213–236.

  • Castillo-Vergara, M., Alvarez-Marin, A. and Placencio-Hidalgo, D., A bibliometric analysis of creativity in the field of business economics. J. Bus. Res., 2018, 85, 1–9.

  • Waltman, L. and Van Eck, N., A new methodology for constructing a publication level classification system of science. J. Am. Soc. Inf. Sci. Technol., 2012, 63, 2378–2392.

  • Cobo, M., López-Herrera, A., Herrera-Viedma, E. and Herrera, F., SciMAT: A new science mapping analysis software tool. J. Am. Soc. Inf. Sci. Technol., 2012, 63, 1609–1630.

  • Callon, M., Courtial, J.-P. and Laville, F., Coword analysis as a tool for describing the network of interactions between basic and technological research: the case of polymer chemistry. Scientometrics, 1991, 22(1), 155–205.

  • Engel, D. and Stiebale, J., Private equity, investment and financial constraints : firm-level evidence for France and the United Kingdom. Small Bus. Econ. Group, 2014, 43(1), 197–212.

  • Kortum, S. and Lerner, J., Assessing the contribution of venture capital to innovation. Rand J. Econ., 2000, 31, 674–692.

  • Hellmann, T. and Puri, M., The interaction between product market and financing strategy: the role of venture capital. Rev. Financ. Stud., 2000, 13, 959–984.

  • Engel, D. and Keilbach, M., Firm-level implications of early stage venture capital investment – an empirical investigation. J. Empir. Financ., 2007, 14(2), 150–167.

  • Chemmanur, T. J., Krishnan, K. and Nandy, D. K., How does venture capital financing improve efficiency in private firms? A look beneath the surface. Rev. Financ. Stud., 2011, 24(617), 4037– 4090.

  • Croce, A., Martí, J. and Murtinu, S., The impact of venture capital on the productivity growth of European entrepreneurial firms: ‘screening’ or ‘value added’ effect? J. Bus. Ventur., 2013, 28(4), 489–510.

  • Bertoni, F., Colombo, M. G. and Grilli, L., Venture capital financing and the growth of high-tech start-ups: disentangling treatment from selection effects. Res. Policy, 2011, 40(7), 1028–1043.

  • Davila, A., Foster, G. and Gupta, M., Venture capital financing and the growth of startup firms. J. Bus. Ventur., 2003, 18(6), 689– 708.

  • Grilli, L. and Murtinu, S., Government, venture capital and the growth of European high-tech entrepreneurial firms. Res. Policy, 2014, 43(9), 1523–1543.

  • Paglia, J. K. and Harjoto, M. A., The effects of private equity and venture capital on sales and employment growth in small and medium-sized businesses. J. Bank Financ., 2014, 47(1), 177–197.

  • Puri, M. and Zarutskie, R., On the life cycle dynamics of venturecapitaland non-venture-capital-financed firms. J. Financ., 2012, 67(6), 2247–2293.

  • Barry, C. B., Muscarella, C. J., Peavy III, J. W. and Vetsuypens, M. R., The role of venture capital in the creation of public companies: evidence from the going public process. J. Financ. Econ., 1990, 27, 447–471.

  • Stuart, T. E., Hoang, H. and Hybels, R. C., Interorganizational endorsements and the performance of entrepreneurial ventures. Adm. Sci. Q., 1999, 44(2), 315–349.

  • Mason, C. and Stark, M., What do investors look for in a business plan?: a comparison of the investment criteria of bankers, venture capitalists and business angels. Int. Small Bus. J., 2004, 22(3), 227–248.

  • Croce, A., Tenca, F. and Ughetto, T., How business angel groups work: Rejection criteria in investment evaluation. Int. Small Bus. J., 2017, 35(4), 405–426.

  • Mason, C. M., Botelho, T. and Zygmunt, J., Why business angels reject investment opportunities: is it personal? Int. Small Bus. J., 2017, 35(5), 519–534.

  • Mason, C. M. and Harrison, R. T., Business angel investment activity in the financial crisis: UK evidence and policy implications. Environ. Plan. C-Gov. Policy, 2015, 33(1), 43–60.

  • Dutta, S. and Folta, T. B., A comparison of the effect of angels and venture capitalists on innovation and value creation. J. Bus. Ventur., 2016, 31, 39–54.

  • Sorenson, O. and Stuart, T. E., Syndication networks and the spatial distribution of venture capital investments. Am. J. Sociol., 2001, 106(6), 1546–1588.

  • Hockberg, Y. U., Ljungqvist, A. and Lu, Y., Whom you know matters: venture capital networks and investment performance. J. Financ., 2007, LXII(1), 251–301.

  • Lockett, A. and Wright, M., The syndication of venture capital investments. Omega, 2001, 29, 175–190.

  • Manigart, S. et al., Venture capitalists’ decision to syndicate. Entrep. Theory Pract., 2006, 30, 131–153.

  • Zhang, A. Y., Access to venture capital and the performance of venture-backed start-ups in silicon valley. Econ. Dev. Q., 2007, 21(2), 124–147.

  • Gompers, P. and Josh Lerner, J., The determinants of corporate venture capital success: organizational structure, incentives and complementarities. NBER Working Paper, 1998, 6725.

  • Gans, J. S. and Stern, S., The product market and the market for ‘ideas’: commercialization strategies for technology entrepreneurs. Res. Policy, 2003, 32(2), 333–350.

  • Dushnitsky, G. and Lenox, M. J., When does corporate venture capital investment create firm value? J. Bus. Ventur., 2006, 21, 753–772.

  • Wadhwa, A. and Kotha, S., Knowledge creation through external venturing: evidence from the telecommunications equipment manufacturing industry. Acad. Manage. J., 2006, 49, 819–835.

  • Allen, S. A. and Hevert, K. T., Venture capital investing by information technology companies: did it pay? J. Bus. Ventur., 2007, 22, 262–282.

  • Cumming, D. J. and Zhang, M., Angel investors around the world. J. Int. Bus. Stud., 2018; https://doi.org/10.1057/s41267-018-0178-0 75. Huang, L. and Pearce, J. L., Managing the unknowable: The effectiveness of early-stage investor gut feel in entrepreneurial investment decisions. Adm. Sci. Q., 2015, 60, 634–670.

  • Harrison, R. T. and Mason, C. M., Backing the horse or the jockey? due diligence, agency costs, information and the evaluation of risk by business angel investors. Int. Rev. Entrepren., 2017, 15(3), 269–290.

  • Block, J., Hornuf, L. and Moritz, A., Which updates during an equity crowdfunding campaign increase crowd participation? Small Bus. Econ. Group, 2018, 50(1), 3–27.

  • Hornuf, L. and Schwienbacher, A., Market mechanisms and funding dynamics in equity crowdfunding. J. Corp. Financ., 2018, 50, 556–574.

  • Brown, R., Mawson, S., Rowe, A. and Mason, C., Working the crowd: Improvisational entrepreneurship and equity crowdfunding in nascent entrepreneurial ventures. Int. Small Bus. J., 2018, 36(2), 169–193.

  • Drover, W., Wood, M. and Zacharakis, A., Attributes of angel and crowd funded ventures as determinants of VC screening decisions. Entrep. Theory Pract., 2017, 41(3), 323–347.


Abstract Views: 348

PDF Views: 105




  • Alternative Equity Financing Instruments for Entrepreneurial Ventures:A Bibliometric Analysis of Research in the Last Three Decades

Abstract Views: 348  |  PDF Views: 105

Authors

Carmelo Reverte
Department of Accounting and Finance, Technical University of Cartagena, c/Real, 3, E-30201 Cartagena, Spain
Rosa Badillo
Department of Accounting and Finance, Technical University of Cartagena, c/Real, 3, E-30201 Cartagena, Spain

Abstract


This study aims to review scientific research in business economics related to entrepreneurial equity financing carried out in the last three decades (1984–2017) using a bibliometric analysis. To this end, 1321 documents on this topic were extracted from the Web of Science database and sorted according to the following perspectives: number of publications per year, the most cited articles, most eminent authors, journals with the highest citation per article, and countries with the highest productivity. Our research also provides clusters based on a co-occurrence analysis of keywords in order to identify the major themes investigated. Our results can be used to improve our understanding of the entrepreneurial equity financing field and identify promising research areas to further explore in the future.

Keywords


Bibliometrics, Business Angels, Citation Analysis, Equity Crowdfunding, Entrepreneurship, Venture Capital.

References





DOI: https://doi.org/10.18520/cs%2Fv116%2Fi6%2F926-935