Van Caneghem, Tom; Van Uytbergen, Steve; Luypaert, Mathieu
This paper studies how the presence of cross-border as opposed to domestic venture capital investors is associated with the growth of portfolio companies. For this purpose, we use a longitudinal research design and track sales, total assets and payroll expenses in 761 European technology companies from the year of initial venture capital investment up to seven years thereafter. Findings demonstrate how companies initially backed by domestic venture capital investors exhibit higher growth in the short term compared to companies backed by cross-border investors. In the medium term, companies initially backed by cross-border venture capital investors exhibit higher growth compared to companies backed by domestic investors. Finally, companies that are initially funded by a syndicate comprising both domestic and cross-border venture capital investors exhibit the highest growth. Overall, this study provides a more fine-grained understanding of the role that domestic and cross-border venture capital investors can play as their portfolio companies grow and thereby require different resources or capabilities over time.
Manigart, Sophie; Baeyens, Katleen; Verschueren, I. (2002)
Fortis, the leading Benelux financial group, had been a success story of successive mergers of bank and insurance companies, with leadership in corporate social responsibility (CSR). One year after the acquisition of the major Dutch financial conglomerate ABN AMRO, the global financial crisis caused the collapse of the Fortis group. The purpose of this article is to use the case study of Fortis’s recent fall as a basis for reflective considerations on the financial crisis, from stakeholder and ethical perspectives. A selected number of key events of the history of the dramatic crisis at Fortis will be analysed from different ethical frameworks. Special consideration will be given to fairness of communication, shareholder activism and conflicts of interests of CEO’s mergers opportunities. A confrontation between the CSR policy and the reality raises the fundamental questions why the powerful CSR guidelines and ethical principles did not help in the assessment of the risks.
Bankruptcy prediction has been a topic of research for decades, both within the financial and the academic world. The implementations of international financial and accounting standards, such as Basel II and IFRS, as well as the recent credit crisis, have accentuated this topic even further. This paper describes both regularized and non-linear kernel variants of traditional discriminant analysis techniques, such as logistic regression, Fisher discriminant analysis (FDA) and quadratic discriminant analysis (QDA). Next to a systematic description of these variants, we contribute to the literature by introducing kernel QDA and providing a comprehensive benchmarking study of these classification techniques and their regularized and kernel versions for bankruptcy prediction using 10 real-life data sets. Performance is compared in terms of binary classification accuracy, relevant for evaluating yes/no credit decisions and in terms of classification accuracy, relevant for pricing differentiated credit granting. The results clearly indicate the significant improvement for kernel variants in both percentage correctly classified (PCC) test instances and area under the ROC curve (AUC), and indicate that bankruptcy problems are weakly non-linear. On average, the best performance is achieved by LSSVM, closely followed by kernel quadratic discriminant analysis. Given the high impact of small improvements in performance, we show the relevance and importance of considering kernel techniques within this setting. Further experiments with backwards input selection improve our results even further. Finally, we experimentally investigate the relative ranking of the different categories of variables: liquidity, solvency, profitability and various, and as such provide new insights into the relative importance of these categories for predicting financial distress.
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