Ratio Working Paper No. 342: Business Angels and Firm Performance: First Evidence from Population Data

PublikationWorking paper
Business angels, Firm performance, Population Data, Sample selection
Ratio Working Paper No. 342
Ladda ner


Business angels dominate early stage investment in firms but research on the effects of their investment is scarce and limited by sample selection. We therefore propose an algorithm for identifying business angel investment in total population data. We apply the algorithm to study the effects of business angels on firm performance, using detailed and longitudinal total population data for individuals and firms in Sweden. Employing these data and a quasi-experimental estimator, we find that business angels engage in firms that already perform above par but that there also is a positive effect on subsequent growth, comparing with control firms. Firms with business angel investment perform better in terms of sales and employment growth and likelihood of becoming a high-growth firm. Contrary to previous research, we cannot find any impact on firm survival, however. Overall, our results underline the need to address sample selection issues both in identifying business angels and in evaluating their effects on firm performance.

Andersson, F. & Lodefalk, M. (2020). Business Angels and Firm Performance: First Evidence from Population Data. Ratio Working Paper No 342. Stockholm: Ratio.

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Working Paper No. 332: Are New Shopping Centers Drivers of Development in Large Metropolitan Suburbs? The Interplay of Agglomeration and Competition Forces
Working paperPublikation
Mihaescu, O., Korpi, M. & Öner, Ö.


Publicerat i

Ratio Working Paper


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Artikel (med peer review)Publikation
Bjuggren, P-O., Nordström, L., & Palmberg, J.



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Design/methodology/approach: This paper uses a unique database of ownership and leadership in private Swedish firms that makes it possible to analyze differences in firm performance due to female leadership in family and non-family firms. The analysis is based on survey data merged with micro-level data on Swedish firms. Only firms with five or more employees are included in the analysis. The sample contains more than 1,000 firms.

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Originality/value: Comparative studies examining the impact of female leadership on firm-level performance in family and non-family firms are rare, and those that exist are most often either qualitative or focused on large, listed firms. By investigating the role of female directors in family and non-family firms, the study adds to the literature on management, corporate governance and family firms.

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