Financing sustainable entrepreneurship: ESG measurement, valuation, and performance

  • 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.

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Author:Sasan MansouriORCiDGND, Paul P. MomtazORCiDGND
URN:urn:nbn:de:hebis:30:3-784520
DOI:https://doi.org/10.1016/j.jbusvent.2022.106258
ISSN:0883-9026
Parent Title (English):Journal of business venturing
Publisher:Elsevier
Place of publication:Amsterdam
Document Type:Article
Language:English
Year of Completion:2022
Year of first Publication:2022
Publishing Institution:Universitätsbibliothek Johann Christian Senckenberg
Release Date:2024/03/05
Tag:Blockchain-based crowdfunding; ESG; Entrepreneurial finance; Initial coin offering (ICO); Machine learning; Sustainability orientation; Sustainable entrepreneurship; Token offering
Volume:37
Issue:6, art. 106258
Article Number:106258
Page Number:23
HeBIS-PPN:519277163
JEL-Classification:L Industrial Organization / L2 Firm Objectives, Organization, and Behavior / L26 Entrepreneurship
M Business Administration and Business Economics; Marketing; Accounting / M1 Business Administration / M13 New Firms; Startups
Q Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Q0 General / Q01 Sustainable Development
Q Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Q5 Environmental Economics / Q56 Environment and Development; Environment and Trade; Sustainability; Environmental Accounting; Environmental Equity; Population Growth
Sammlungen:Universitätspublikationen
Licence (German):License LogoCreative Commons - CC BY - Namensnennung 4.0 International