The impact of venture capital on the productivity growth of European entrepreneurial firms: ‘Screening’ or ‘value added’ effect?

The performance of banks has been widely researched using accounting ratios, Tobin�s Q and market returns and less emphasis has been given to productivity measures. The productivity growth of banks is captured through Malmquist Productivity Index (MPI). The study then investigates the impact of intellectual capital on the productivity of banks in Pakistan. Value-added The intellectual Coefficient (VAIC) approach is employed to examine the intellectual capital of banks. Data is obtained from annual reports of 20 banks listed on the Pakistan Stock Exchange for 10 years (2007-2016). The panel corrected standard error approach is used for estimating the panel regression model. The findings provide evidence that the VAIC, human capital efficiency (HCE) and structural capital efficiency (SCE) has a positive impact on productivity growth (MPI). On the other hand, capital employed efficiency (CEE) has no significant impact on productivity growth. The VAIC approach may be useful for the banks and policymakers in a knowledge economy to integrate the intellectual capital in the decision-making process. Our results also suggest that banks in Pakistan shall increase spending on intellectual capital particularly on human capital and structural capital to elevate the intellectual capital of banks and subsequently get benefits in terms of increased productivity Keywords: Intellectual capital; Value added intellectual coefficient (VAIC); Malmquist productivity Index; Pakistan banking sector

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The Impact of Global Value Chain Participation on Sectoral Growth and Productivity

Sustainability ◽

10.3390/su12124848 ◽

2020 ◽

Vol 12 (12) ◽

pp. 4848

Author(s):

Halit Yanikkaya ◽

Abdullah Altun

Keyword(s):

Productivity Growth ◽

Value Chain ◽

Manufacturing Sector ◽

Generalized Method Of Moments ◽

Value Added ◽

Output Growth ◽

Global Value Chain ◽

Tfp Growth ◽

Parameter Heterogeneity ◽

The Impact

This study investigates the impact of participation in global value chains (GVCs) on sectoral value-added and total factor productivity growth (TFP) for two different time periods of 1995–2011 and 2005–2015. In addition to the commonly used participation indices, we also calculate lesser known measures of backward and forward participation indices, as suggested by the OECD. Our Generalized Method of Moments (GMM) estimations for the full sample indicate that sectors with higher GVC participation experience much higher output and TFP growth, especially for the period 1995–2011. Overall, our results imply that there have been decreasing gains from GVC participation in the later period. Note that our estimates for both output and TFP growth are very much similar. This means that participation in GVCs promotes not only output growth but also productivity growth across sectors. Considering the parameter heterogeneity, we repeat our estimations for manufacturing and services separately. Although for the earlier period both the manufacturing and services sectors benefit from more participation in terms of higher output and productivity growth, only the manufacturing sector experiences higher productivity growth from more participation for the period 2005–2015. Relatively less significant and smaller estimates for the later period covering the latest global crisis imply that participation in GVCs fails to bring satisfactory gains to countries and sectors.

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Do VC Firms of Different Ownership Structures Exert Heterogeneous Impact on the SMEs’ Profitability?

Journal of Commercial Biotechnology ◽

10.5912/jcb813 ◽

2017 ◽

Vol 23 (3) ◽

Author(s):

Xi Yang ◽

Su-Sheng Wang

Keyword(s):

Venture Capital ◽

Positive Impact ◽

Entrepreneurial Firms ◽

Ownership Structures ◽

Negative Effect ◽

Heterogeneous Effect ◽

The Impact

This article is to investigate the heterogeneous effect of Venture Capital?VC, in abbreviated form?on the profitability performance of small and medium sized enterprises (SMEs, in abbreviated form) in China, from the perspective of VC firms’ different ownership structures. Our regression results show that the Chinese entrepreneurial firms backed by VC firms can present significantly positive superiority over the non VC backed peers in the performance of profitability; the VC firms can exert the positive impact on the profitability performance of the SMEs. After focusing on the VCs’ characteristics in the ownership structures, it is proven that the foreign VC firms can have the strongest positive impact on the ventures’ profitability performance; the Chinese private VC firms can have the positive impact on the SMEs’ profitability, but the impact is weaker than that of foreign VCs and stronger than that of governmental VC in a positive way; the governmental VC firms exert the significantly negative effect on the ventures’ profitability.

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Credit volatility and productivity growth

Equilibrium ◽

10.24136/eq.2018.011 ◽

2018 ◽

Vol 13 (2) ◽

pp. 215-232

Author(s):

Michał Brzozowski

Keyword(s):

Productivity Growth ◽

Negative Impact ◽

Technological Development ◽

Value Added ◽

Banking Crises ◽

Negative Influence ◽

Financial Instability ◽

Tfp Growth ◽

Financial Depth ◽

The Impact

Research background: The issues of finance-growth nexus and financial instability have attracted considerable attention, but have been studied in isolation. This paper aims at filling this gap by providing insights into the implications of financial instability for long term productivity growth. Purpose of the article: This paper sheds light on the relationship between credit-to-GDP ratio volatility and the total factor productivity (TFP) growth rate. The impact of systemic banking crises and financial depth on productivity growth is also studied. Methods: The System GMM estimation of panel data for over 100 countries and spanning the period of 1970–2009 is used. The decomposition of credit-to-GDP ratio into trend and cyclical component is performed using the Hodrick-Prescott filter and a regression analysis with country-specific intercepts and slopes. The data on TFP comes from the Penn World Tables database. Findings & Value added: TFP growth is negatively affected by credit volatility, mainly in less technologically advanced countries, while financial depth exerts a negative influence on TFP growth in economies with superior technology. Systemic banking crises and the concomitant credit crunches have a negative impact on productivity growth, regardless of the level of technological development. Moreover, the level of human capital, patents and globalization fuel productivity growth. Macroeconomic instability, measured by the rate of inflation, hampers TFP growth.

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The Impact of ICT on Labour Productivity – Europe vs. U.S.

SHS Web of Conferences ◽

10.1051/shsconf/202112908021 ◽

2021 ◽

Vol 129 ◽

pp. 08021

Author(s):

Predrag Trpeski ◽

Borce Trenovski ◽

Gunter Merdzan ◽

Kristijan Kozeski

Keyword(s):

Information And Communication Technologies ◽

Productivity Growth ◽

New Technologies ◽

Labour Productivity ◽

Value Added ◽

Developed Countries ◽

The United States ◽

Critical Question ◽

The Impact ◽

The U.S

Research background: The European economy has been experiencing declining productivity growth rates since the 1970s despite high investments in information and communication technologies (ICT). Investments in ICT are considered a key driver of productivity growth that serves as a basis for further improvements in living standards. However, despite the emergence of new technologies and industries, especially after 1995, European productivity growth has slowed and lagged behind the United States. The critical question is why? Purpose of the article: This article aims to examine the effects of ICT on the European labour market in the period when machines and systems such as artificial intelligence, new information technologies, the Internet of things, and other technologies are becoming increasingly interconnected and intertwined. Additionally, the article examines the key reasons why European productivity lags behind the U.S. and explains them. Methods: The panel regression method analyzes the productivity lag of selected European developed countries and emerging markets in 2007-2019. The article additionally makes a qualitative analysis of the benefits of new technologies on productivity in Europe compared to the U.S. Findings & Value added: The results of the econometric analysis applied in this article confirm the positive but insignificant impact of ICT investments on the labour productivity of the case of European developed countries in the post-Great Recession period. Thus, the article fills the gap in the research literature regarding the relationship between ICT investments and the labour productivity of selected European countries.

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The impact of lending availability and conditions for SMEs on the global development of venture financing systems

SHS Web of Conferences ◽

10.1051/shsconf/20219207006 ◽

2021 ◽

Vol 92 ◽

pp. 07006

Author(s):

Svetlana Balashova ◽

Ivan Mikhaylov ◽

Mikhail Lazyrin

Keyword(s):

Venture Capital ◽

Global Economy ◽

Value Added ◽

World Order ◽

Innovation Activity ◽

Financing System ◽

Delegation Of Authority ◽

Ict Development ◽

Venture Financing ◽

The Impact

Research background: The current situation, which caused global economy recession, has shown that all participants of the venture capital market are not ready for such occasions. Small and medium-sized businesses found themselves in a in a pickle that completely limited the ability to conduct business in most sectors of the economy and venture investors had to urgently reassess their capabilities and their requirements for investment objects. Different events have been constantly influencing the venture financing system to change and develop during decades of its existence. The most important changes are happening today in new world order dictated by COVID-19. Purpose of the article: The aim of this article is to analyse the current state of venture financing, find out how VC is related to the ICT development in European countries, compare VC to other lending mechanisms for SMEs and assume how the global venture industry may be changed by global isolation. Methods: The ARDL model for panel data is used to assess the impact of ICT developments on VC. Comparative and statistical analysis of available datasets on financing mechanisms is conducted. Findings & Value Added: The results show that the increase in value-added in the ICT sector is driving the growth of venture capital in leading countries in terms of innovation activity. Venture capital will be forced to transform towards globalization and centralization, but with the delegation of authority to local representatives, through new communication forms. Countries with high ICT development may be more attractive for venture financing.

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