• A guide to private equity: Is a buy-in the right move for your practice

      Manigart, Sophie; Van Dyck, Walter; Witmeur, Olivier (CRST Europe, 2017)
    • A longitudinal study on the relationship between financial bootstrapping and new venture growth

      Vanacker, Tom; Manigart, Sophie; Meuleman, Miguel; Sels, Luc (Entrepreneurship & Regional Development, 2011)
      While bootstrap finance is widely used in entrepreneurial ventures, both scholars and practitioners have presented conflicting views on the relation between financial bootstrapping and venture growth. This article empirically investigates the association between bootstrap strategies used at startup and subsequent venture growth. For this purpose, we use a longitudinal database comprising data from both questionnaires and financial accounts of 214 new ventures. Findings demonstrate that the association between financial bootstrapping and venture growth is either nonexistent or positive. More specifically, new ventures that use more owner funds, employ more interim personnel, encourage customers to pay more quickly, and apply for more subsidy programs exhibit higher growth over time. We discuss the managerial and policy implications of these results and suggest avenues for future research.
    • A perspective on the economic valorization of gene manipulated biotechnology: Past and future

      Knockaert, Mirjam; Manigart, Sophie; Cattoir, Sofie; Verstraete, Willy (Biotechnology Reports, 2015)
      Three distinct fields of gene manipulated biotechnology have so far been economically exploited: medical biotechnology, plant biotechnology and industrial biotechnology. This article analyzes the economic evolution and its drivers in the three fields over the past decades, highlighting strong divergences. Product and market characteristics, affecting firms' financing options, are shown to be important enablers or inhibitors. Subsequently, the lack of commercialization in a fourth type of gene manipulated biotechnology, namely environmental biotechnology, is explained by the existence of strong barriers. Given the latter's great promises for environmental sustainability, we argue for a need to push the commercial valorization of environmental biotechnology. Our research has strong implications for (technology) management research in biotechnology, pointing to a need to control for and/or distinguish between different biotechnology fields.
    • Acquisitions: a curse or blessing for direct competitors? The impact of target ownership structure  

      Mataigne, Virginie; Luypaert, Mathieu; Manigart, Sophie (Journal of Corporate Finance, 2021)
      This study examines the impact of horizontal acquisition announcements on the value of direct competitors of the combined entity. We argue that the ownership structure of the target drives competitor wealth effects. First, the stronger disciplining force of the market for corporate control for public firms compared to private firms will lead to higher competitive pressure post-acquisition when a public firm is acquired, leading to more negative valuation effects of direct competitors. Second, acquisitions of subsidiary targets, compared to stand-alone targets, are expected to lead to stronger asset utilization improvements in the target, leading to more negative competitor returns. A unique hand-collected sample of 1,038 direct competitors of 228 horizontal acquisitions in Europe empirically supports these hypotheses. Alternative explanations, such as information asymmetry or empire-building, are rejected.
    • Are you part of the crowd? The role of sex and environmental characteristics for crowdfunding awareness

      Vaznyte, Egle; Andries, Petra; Manigart, Sophie (Journal of Small Business Management, 2020)
      Crowdfunding has become an alternative source of financing for entrepreneurial new ventures and social projects. While several studies have analysed the success factors of crowdfunding campaigns, and identifying and “tapping the right crowd” has been shown crucial in this respect, we still lack a basic understanding of the individuals who are in the crowd. This study aims to increase our understanding of the supply side of crowdfunding by focussing on individuals’ crowdfunding awareness. Integrating information processing theory with insights from financial literacy and institutional theory, and using a sample of 1,042 individuals in Flanders (Belgium), we find that individuals’ awareness of specific crowdfunding initiatives is very low. A favourable normative environment and a conducive environment increases an individual’s awareness of crowdfunding in general, and women tend to derive their crowdfunding awareness to a larger extent from these environmental characteristics than men. These results have important practical and theoretical implications.
    • Assessment of government funding of business angel networks in Flanders

      Collewaert, Veroniek; Manigart, Sophie; Aernoudt, Rudy (Regional Studies, 2010)
    • Attitudes of family firms towards external investors: The importance of organizational identification

      Neckebrouck, Jeroen; Manigart, Sophie; Meuleman, Miguel (Venture capital, 2017)
      More and more family firms open their capital for outside investors, yet existing studies mainly conclude that family firms are more reluctant than nonfamily firms to hand over control to outside investors. In this study, we build on an organizational identification perspective to explore why family firms differ in their attitudes toward outside investors. We hypothesize that family members who identify strongly with their firms are less willing to cede control to outside investors and, if they do cede control, have a stronger preference for investors who may readily identify with family firms, such as family offices or high net worth individuals, rather than investors who may not fit well with a familial identity, such as private equity sponsors or financial investors. We also hypothesize that social identification mediates the relationship between important family firm governance characteristics and preferences for outside investor. Exploratory evidence from a sample of Belgian family firms is supportive of most of our predictions.
    • Beyond environmental scarcity: Human and social capital as driving forces of bootstrapping activities

      Grichnik, Dietmar; Brinckmann, Jan; Singh, Luv; Manigart, Sophie (Journal of Business Venturing, 2014)
      Although entrepreneurship scholars highlight bootstrapping as a key resource acquisition approach to respond to the inherent resource constraints that nascent ventures face, little is known about what causes nascent ventures to engage in bootstrapping. Theory highlights the environment as an important determinant of bootstrapping activity. Analyzing bootstrapping behavior of 298 nascent ventures, we find that beyond perceived environmental factors, individual characteristics of the nascent entrepreneurs and factors relating to the embeddedness of the entrepreneurs in the environment determine their venture's bootstrapping behavior. In a more fine-grained analysis we gain insights into how these antecedents shape the use of particular bootstrapping strategies. Findings contribute to our understanding of factors driving resource management approaches in nascent ventures.
    • De financiering van hoogtechnologische startende ondernemingen in Vlaanderen

      Manigart, Sophie; Struyf, Carol (Economisch en Sociaal Tijdschrift, 1995)
    • De rol van venture capital

      Manigart, Sophie (Bank- en Financiewezen, 2007)
    • Determinants of required returns in venture capital investments: A five-country study

      Manigart, Sophie; De Waele, K.; Wright, Mike; Robbie, K. (Journal of Business Venturing, 2002)
      Using 2 complementary theoretical perspectives, this paper develops hypotheses regarding the determinants of the return required by venture capitalists and tests this on a sample of over 200 venture capital companies (VCCs) located in 5 countries. It finds that early-stage specialists required a significantly higher return than other VCCs when investing in later-stage ventures. It also finds that acquisition/buyout specialists require a significantly lower return than other VCCs when investing in expansion companies.
    • Dynamic financing strategies: The role of venture capital

      Baeyens, Katleen; Manigart, Sophie (Journal of Private Equity, 2003)
    • Entrepreneurial companies' choice between long-term and short-term debt and the role of venture capital

      Baeyens, Katleen; Manigart, Sophie (SCMS Journal of Indian Management, 2006)
    • Escalation of commitment in venture capital decision making: Differentiating between domestic and international investors

      Devigne, David; Manigart, Sophie; Wright, Mike (Journal of Business Venturing, 2016)
      Drawing upon an escalation of commitment framework, this study investigates how differences between cross-border and domestic venture capital investors in emotional, social, and institutional factors affect their decision to terminate an unsuccessful investment. We track the exit outcome of 1060 venture capital investments in 684 European technology companies. Results show that domestic investors have a high tendency to escalate their commitment to a failing course of action, while cross-border investors terminate their investments efficiently, even when investing through a local branch. This is explained by cross-border investors having a lower social and emotional involvement with the project and a lower embeddedness in the local economic and social environment, decreasing individual decision biases. Further, they are affected to a lower extent by normative pressures to further invest from their co-investment network. Local branches of cross-border investors are also shielded from escalation of commitment. We conjecture that their international investment committee acts as an organizational safeguard against individual decision biases. Domestic investors may hence benefit from mimicking the behavior of cross-border investors.
    • Explaining academic interest in crowdfunding as a research topic

      Le Pendeven, Benjamin; Bardon, Thibaut; Manigart, Sophie (British Journal of Management, 2021)
      Crowdfunding research has grown exponentially since the first academic papers in the field were published in 2013. This interpretivist study attempts to explain why academics worldwide have chosen to study crowdfunding. As no explicit theories currently exist to guide our research, we have relied on schooling and management fashion theories. Based on interviews with 30 crowdfunding scholars, we develop a model which interprets the underlying reasons why academics have chosen this research topic. Our results show that, beyond scientific reasons, career and socio-psychological reasons also explain why academics have chosen to research crowdfunding. By documenting both the scientific and non-scientific reasons why researchers study a certain topic, our findings contribute to the knowledge about the rationales behind scientific development in the fields of management, entrepreneurial finance and entrepreneurship.
    • Financial reporting quality in private equity backed companies: the impact of ownership concentration

      Beuselinck, Christof; Manigart, Sophie (Small Business Economics, 2007)
    • Financing the high technology startups in Belgium: an explorative study

      Manigart, Sophie; Struyf, Carol (Small Business Economics, 1997)
      The results of an explorative study on the financing of 18 high technology Belgian startups are reported. On a counts basis, the most important sources of financing at the startup are the entrepreneurs and the banks, but the sources that provide the largest amounts of funds are the venture capital companies and private investors. Private investors and venture capitalists have a complimentary role, with the former investing mostly at the startup and the latter financing the early growth. The role of the government, universities and other companies is limited.
    • Firm exit after distress: differentiatiating between bankruptcy, voluntary liquidation and M&A

      Balcaen, Sofie; Manigart, Sophie; Ooghe, Hubert; Buyze, J. (Small Business Economics, 2012)
    • Firm valuation in venture capital financing rounds: the role of investor bargaining power

      Heughebaert, Andy; Manigart, Sophie (Journal of Business Finance and Accounting, 2012)
      theories mentioned in research on executive compensation to each of these paradigms