Citation

Discussion Paper Details

Please find the details for DP5224 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: What are Firms? Evolution from Birth to Public Companies

Author(s): Steven Kaplan, Berk A. Sensoy and Per Johan Strömberg

Publication Date: September 2005

Keyword(s): entrepreneurship, theory of the firm and venture capital

Programme Area(s): Financial Economics

Abstract: We study how firm characteristics evolve from early business plan, to initial public offering, to public company for 49 venture capital financed companies. The average time elapsed is almost six years. We describe the financial performance, business idea, point(s) of differentiation, non-human capital assets, growth strategy, customers, competitors, alliances, top management, ownership structure, and the board of directors. Our analysis focuses on the nature and stability of those firm attributes. Firm business lines remain remarkably stable from business plan through public company. Within those business lines, non-human capital aspects of the businesses appear more stable than human capital aspects. In the cross-section, firms with more alienable assets have substantially more human capital turnover.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=5224

Bibliographic Reference

Kaplan, S, Sensoy, B and Strömberg, P. 2005. 'What are Firms? Evolution from Birth to Public Companies'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=5224