Labor Rights, Venture Capital, and Firm Performance

作者：Xuejing Xing, John S. Howe, Randy I. Anderson, Shan Yan · 发表于：Financial Management · 年份：2016 · DOI：10.1111/fima.12137 · 被引用次数：15 · 研究领域：Firm Innovation and Growth、Private Equity and Venture Capital、Corporate Finance and Governance

We investigate the role of labor unions in the performance of venture capital (VC)‐backed firms. Using a large sample of initial public offering firms from 1983 to 2013, we find that VC‐backed firms in highly unionized industries have lower Tobin's Q and are less likely to survive. This effect is robust to endogeneity concerns and to controlling for industry and firm characteristics. The findings suggest that strong labor rights impede innovative firms’ performance and survival, thereby adversely affecting innovation, economic growth, and employment.