Determinants of equity financing: a demand-side analysis of Irish indigenous technology-based firms
, und | 13. Mai 2022
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Article Category: Research Article
Online veröffentlicht: 13. Mai 2022
Seitenbereich: 52 - 68
DOI: https://doi.org/10.2478/ijm-2022-0002
Schlüsselwörter
© 2022 Jane Power et al., published by Sciendo
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Probit Results
| Personal Investment | 0.614 |
0.107 |
0.906 (0.586) |
| FConnections | 0.306 |
0.0770 (0.0570) | 0.152 (0.0960) |
| Debt | −0.455 |
−0.104 |
−0.286 |
| Innovation | 0.201 |
0.0478 |
2.148 |
| R&D | 0.135 (0.121) | 0.0321 (0.0300) | 0.465 (0.429) |
| Patent | 0.106 (0.210) | 0.0257 (0.0497) | 0.0492 (0.0931) |
| Size | 0.00136 (0.00167) | 0.000324 (0.000423) | 0.0529 (0.0702) |
| Age | −0.0283 (0.0208) | −0.00676 (0.00516) | −0.335 (0.243) |
| ServiceFirm | −0.256 (0.256) | −0.0665 (0.0856) | −0.331 (0.366) |
| Incubator | 0.317 (0.270) | 0.0839 (0.0748) | 0.0728 (0.0612) |
| Market & Product | |||
| Rivalry | −0.0693 |
−0.0165 |
−2.361 |
| Exports | 0.00780 |
0.00186 |
0.647 |
| ProdDiff | −0.239 |
−0.0570 |
−0.765 (0.523) |
| FoundEdu | 0.438 |
0.104 |
1.029 |
| FoundIndExp | 0.0159 (0.0126) | 0.00378 (0.00326) | 0.452 (0.367) |
| FoundIntExp | 0.328 |
0.0727 |
0.360 (0.233) |
| WorkQual | 0.00981 |
0.00234 |
1.290 |
| Constant | −3.321 |
||
| Observations | 294 | ||
| Log Likelihood | −138.469 | ||
| Wald Chi−square (17) | 80.39 | ||
| Pseudo R2 | 0.3197 | ||
| Prob > Chi2 | 0.0000 | ||
Definition and Descriptive Statistics
| Number (percentage) |
||||
| PersInvest | =‘1’ if firm used founder personal funding; =‘0’ otherwise | 282 (95.9%) | 148 (96.7%) | 134 (95%) |
| FConnections | =‘1’ if firm received f-connection funding; =‘0’ otherwise | 95 (32.3%) | 57 (37.3%) | 38 (27%) |
| Debt | =‘1’ if firm obtained debt financing; =’0’ otherwise | 120 (40.8%) | 49 (32%) | 71 (50.4%) |
| Size | Number of full-time equivalent employees in 2011 | 25.3 (55.7) | 28.7 (65.8) | 21.6 (41.9) |
| Age | Elapsed years from foundation to exit; to Dec. 2016 otherwise | 7.70 (5.58) | 6.64 (3.70) | 8.84 (6.91) |
| ServiceFirm | =‘1’ knowledge-intensive service firm (NACE 58–63, 66, 69–75, 78, 79, 82); =‘0’ otherwise | 247 (84%) | 130 (85%) | 117 (83%) |
| Incubator | =‘1’ if located in an incubation centre; =‘0’ otherwise | 44 (15%) | 29 (19%) | 15 (10%) |
| Rivalry | Number of major rivals the firm faces in its main market | 22.15 (116.19) | 4.60 (5.17) | 41.2 (165.9) |
| Exports | Export sales as a percentage of total sales for the last fiscal year | 53.96 (39.68) | 68.18 (35.52) | 38.52 (38.27) |
| ProdDiff | =‘1’ (very similar); =‘2’ (similar); =‘3’ (different); =‘4’ (very different) | 2.08 (0.79) | 2.22 (0.75) | 1.94 (0.81) |
| FoundEdu | =‘1’ (up to Degree); =‘2’ (Masters); =‘3’ (Ph.D.) | 1.53 (0.63) | 1.68 (0.65) | 1.36 (0.58) |
| WorkQual | Percentage of employees who possess a third level or equivalent qualification | 85.51 (20.76) | 90.75 (13.47) | 79.82 (25.34) |
| FoundIndExp | Number of years’ experience working in the firm’s industrial sector | 18.54 (7.60) | 18.69 (7.02) | 18.38 (8.21) |
| FoundIntExp | =‘1’ if experience working abroad prior to current role; =‘0’ otherwise | 210 (71.4%) | 123 (80.4%) | 87 (61.7%) |
| Innovation | Sum of product and process innovation, where 2 is the lowest and 8 the highest | 6.97 (1.34) | 7.37 (0.97) | 6.45 (1.55) |
| R&D | =‘1’ (longer); =‘2’ (weekly); =‘3’ (daily) | 2.25 (0.82) | 2.46 (0.73) | 2.01 (0.85) |
| Patent | =‘1’ patent holder; =‘0’ otherwise | 89 (30.3%) | 62 (40.5%) | 27 (19.1%) |