Insights for sustainable business practices: Comparative impact of independent and corporate venture capital funding on financial and environmental performance

IF 6.3 2区经济学 Q1 BUSINESS, FINANCE Research in International Business and Finance Pub Date : 2024-10-12 DOI:10.1016/j.ribaf.2024.102632

Fatima Shuwaikh , Agathe Tanguy , Emmanuelle Dubocage , Othman Alolah

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Abstract

This study aims to analyze the effects of venture capital (VC) financing schemes on the financial and environmental performance of their VC-backed companies. This research leverages a dataset including 325 U.S. firms between 2002 and 2022 and examines two issues of interest: independent venture capital (IVC) and corporate venture capital (CVC) funding. The results show that IVC-backed companies have significantly better environmental, social, and governance (ESG) ratings and emit fewer greenhouse gases (GHG) emissions when compared to companies backed by CVC. This highlights that the function of IVC is to improve the environmental sustainability of businesses. Together this helps provide a valuable perspective about which VC models (CVC, IVC) does have an impact on how businesses pursue sustainability practices alongside financial performance. This paper contributes to the sustainable entrepreneurship literature by focusing on the importance of funding types with performing sustainable practices.

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可持续商业实践的启示：独立风险投资和公司风险投资对财务和环境绩效的比较影响

本研究旨在分析风险资本（VC）融资计划对其风险投资支持公司的财务和环境绩效的影响。本研究利用 2002 年至 2022 年间 325 家美国公司的数据集，对独立风险资本（IVC）和企业风险资本（CVC）融资这两个相关问题进行了研究。研究结果表明，与 CVC 支持的公司相比，IVC 支持的公司在环境、社会和治理（ESG）方面的评级明显更高，温室气体（GHG）排放量也更少。这凸显了 IVC 的功能在于改善企业的环境可持续性。这有助于提供一个有价值的视角，说明哪种风险投资模式（CVC、IVC）确实会对企业如何在追求财务业绩的同时追求可持续发展产生影响。本文通过关注资金类型对可持续发展实践的重要性，为可持续创业文献做出了贡献。

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来源期刊

Research in International Business and Finance BUSINESS, FINANCE-

CiteScore

11.20

自引率

9.20%

发文量

240

期刊介绍： Research in International Business and Finance (RIBAF) seeks to consolidate its position as a premier scholarly vehicle of academic finance. The Journal publishes high quality, insightful, well-written papers that explore current and new issues in international finance. Papers that foster dialogue, innovation, and intellectual risk-taking in financial studies; as well as shed light on the interaction between finance and broader societal concerns are particularly appreciated. The Journal welcomes submissions that seek to expand the boundaries of academic finance and otherwise challenge the discipline. Papers studying finance using a variety of methodologies; as well as interdisciplinary studies will be considered for publication. Papers that examine topical issues using extensive international data sets are welcome. Single-country studies can also be considered for publication provided that they develop novel methodological and theoretical approaches or fall within the Journal''s priority themes. It is especially important that single-country studies communicate to the reader why the particular chosen country is especially relevant to the issue being investigated. [...] The scope of topics that are most interesting to RIBAF readers include the following: -Financial markets and institutions -Financial practices and sustainability -The impact of national culture on finance -The impact of formal and informal institutions on finance -Privatizations, public financing, and nonprofit issues in finance -Interdisciplinary financial studies -Finance and international development -International financial crises and regulation -Financialization studies -International financial integration and architecture -Behavioral aspects in finance -Consumer finance -Methodologies and conceptualization issues related to finance