TY - JOUR
T1 - Financing sustainable entrepreneurship
T2 - ESG measurement, valuation, and performance
AU - Mansouri, S.
AU - Momtaz, P.P.
PY - 2022/11
Y1 - 2022/11
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?eid=2-s2.0-85137290675&partnerID=MN8TOARS
U2 - 10.1016/j.jbusvent.2022.106258
DO - 10.1016/j.jbusvent.2022.106258
M3 - Article
SN - 0883-9026
VL - 37
JO - Journal of Business Venturing
JF - Journal of Business Venturing
IS - 6
M1 - 106258
ER -