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

Fátima Shuwaikh; Agathe Tanguy; Emmanuelle Dubocage; Othman Alolah

doi:10.1016/j.ribaf.2024.102632

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

Fátima Shuwaikh^*, Agathe Tanguy, Emmanuelle Dubocage, Othman Alolah

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

1 Citation (Scopus)

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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.

Original language	English
Article number	102632
Journal	Research in International Business and Finance
Volume	73
DOIs	https://doi.org/10.1016/j.ribaf.2024.102632
Publication status	Published - Jan 2025

Keywords

Corporate venture capital
Environmental performance
ESG
Financial performance
Greenhouse gas emissions
Independent venture capital

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.ribaf.2024.102632Licence: CC BY

107749008Final published version, 616 KBLicence: CC BY

http://hdl.handle.net/10400.14/47063Licence: CC BY

Cite this

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title = "Insights for sustainable business practices: comparative impact of independent and corporate venture capital funding on financial and environmental performance",

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.",

keywords = "Corporate venture capital, Environmental performance, ESG, Financial performance, Greenhouse gas emissions, Independent venture capital",

author = "F{\'a}tima Shuwaikh and Agathe Tanguy and Emmanuelle Dubocage and Othman Alolah",

note = "Publisher Copyright: {\textcopyright} 2024 The Authors",

year = "2025",

month = jan,

doi = "10.1016/j.ribaf.2024.102632",

language = "English",

volume = "73",

journal = "Research in International Business and Finance",

issn = "0275-5319",

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Insights for sustainable business practices: comparative impact of independent and corporate venture capital funding on financial and environmental performance. / Shuwaikh, Fátima; Tanguy, Agathe; Dubocage, Emmanuelle et al.
In: Research in International Business and Finance, Vol. 73, 102632, 01.2025.

Research output: Contribution to journal › Article › peer-review

TY - JOUR

T1 - Insights for sustainable business practices

T2 - comparative impact of independent and corporate venture capital funding on financial and environmental performance

AU - Shuwaikh, Fátima

AU - Tanguy, Agathe

AU - Dubocage, Emmanuelle

AU - Alolah, Othman

PY - 2025/1

Y1 - 2025/1

N2 - 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.

AB - 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.

KW - Corporate venture capital

KW - Environmental performance

KW - ESG

KW - Financial performance

KW - Greenhouse gas emissions

KW - Independent venture capital

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DO - 10.1016/j.ribaf.2024.102632

M3 - Article

AN - SCOPUS:85206700243

SN - 0275-5319

VL - 73

JO - Research in International Business and Finance

JF - Research in International Business and Finance

M1 - 102632

ER -

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

Abstract

Keywords

UN SDGs

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CUBE: Católica Lisbon Research Unit in Business and Economics

Cite this

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

Abstract

Keywords

UN SDGs

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CUBE: Católica Lisbon Research Unit in Business and Economics

Cite this