Determinants and effects of Venture Capital and Private Equity ...

Effects on backed firms
For each variable listed, we estimated the equation: yi,t = α +β1Deal0 + β2Deal13 +ut +dt +εi,t. where Deal0is a dummy equal to 1 in every first year of the deal; Deal13 takes value 1 in the 3 subsequent years. ut is
the firm‐specific effect, dt is the calendar‐year effect,εi,t is a random error with zero mean. The specification is estimatd with a fixed effect method by using each company as control for itself after the deal, which
enables to control for firm‐specific characteristics that are time‐invariant. *** indicates significance level of 1% or less; ** between 1 and 5%; * between 5 and 10%.
SME LARGE FIRMS
Variable Number of obs Year 0 Years 1‐3 F‐test Number of obs Year 0 Years 1‐3 F‐test
ROE 2817 ‐2.252 ‐4.820 ** 3.07 ** 1600 ‐5.034 ‐4.181 1.66
(2.272) (1.993) (3.529) (3.016)
ROA 2791 ‐0.009 ** ‐0.011 *** 7.01 *** 1584 ‐0.018 *** ‐0.017 *** 12.01 ***
(0.003) (0.003) (0.005) (0.004)
Total assets (log) 2851 0.198 *** 0.292 *** 38.82 *** 1626 0.142 *** 0.148 *** 13.12 ***
(0.041) (0.035) (0.040) (0.034)
Intangibles 2847 0.044 *** 0.044 *** 16.94 *** 1622 0.028 ** 0.031 *** 6.20 ***
(0.010) (0.009) (0.012) (0.010)
Ebitda 1574 0.122 ** 0.155 *** 6.22 ** 1508 0.065 0.011 0.59
(0.047) (0.055) (0.06) (0.051)
Sales 2884 0 .060 0.236 *** 18.37 *** 1619 0.041 0.128 *** 4.42 **
(0.044) (0.031) (0.051) (0043)
Employees 2809 0.024 0.221 *** 25.07 *** 1593 ‐0.074 * 0.074 *** 10.08 ***
(0.036) (0.031) (0.041) (0.034)
Debt short 2783 0.027 0.172 *** 9.03 *** 1623 0.015 0.091 ** 1.95
(0.046) (0.040) (0.054) (0.046)
Value added x employee (log) 2768 0.092 *** 0.032 3.88 ** 1562 0.102 *** 0.035 4.5 ***
(0.034) (0.029) (0.0409 (0.033)
Trade credit 2431 ‐0.007 ‐0.066 *** 4.74 *** 1590 0.023 ‐0.086 *** 7.15 ***
(0.025) (0.021) (0.029) (0.024)
Financial Expenses 2858 ‐0.002 ** ‐0.001 ** 3.40 ** 1624 ‐0.005 *** ‐0.004 *** 8.91 ***
(0.001) (0.001) (0.001) (0.001)
Debt 2860 0.113 ** 0.268 *** 21.36 *** 1626 0.063 0.123 *** 3.7 **
(0.047) (0.041) (0.055) (0.046)
Capex 2506 ‐0.029 ‐0.061 ** 1.39 1432 ‐0.002 ‐0.045 0.61
(0.043) (0.031) (0.049) (0.041)
Growth 2544 ‐0.031 0.005 0.41 1453 ‐0.033 0.017 0.32
(0.037) (0.032) (0.054) (0.045)
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Table 6