Financing sustainable entrepreneurship: ESG measurement, valuation, and performance
Abstract
Sustainability orientation has a positive effect on startups’ initial valuation and a negative effect on their post-funding financial performance. All else equal, improving sustainability orientation by one standard deviation increases startups’ funding amount by 28% and decreases investors’ abnormal returns per post-funding year by 16%. The results hold in a large sample of blockchain-based crowdfunding campaigns, also known as Initial Coin Offerings (ICOs) or token offerings. A key contribution is a machine-learning approach to assess startups’ Environment, Society and Governance (ESG) properties from textual data, which we make readily available at www.SustainableEntrepreneurship.org.
Cite this
Sasan Mansouri, Paul P. Momtaz (2022). Financing sustainable entrepreneurship: ESG measurement, valuation, and performance. Journal of Business Venturing. https://doi.org/10.1016/j.jbusvent.2022.106258
@article{sasan2022financing,
title = {Financing sustainable entrepreneurship: ESG measurement, valuation, and performance},
author = {Mansouri, Sasan and Momtaz, Paul P.},
year = {2022},
journal = {Journal of Business Venturing},
doi = {10.1016/j.jbusvent.2022.106258}
}Citations in this library
Stored only when both papers are in the corpus — 249 citations exist upstream.