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
N1 - Publisher Copyright:
© 2024 The Authors
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
UR - https://www.scopus.com/pages/publications/85206700243
U2 - 10.1016/j.ribaf.2024.102632
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 -
