Human capital theory and venture capital firms: exploring "home runs" and "strike outs"

Dimo P. Dimov, Dean A. Shepherd

Research output: Contribution to journalArticle

  • 215 Citations

Abstract

Using a human capital perspective, we investigated the relationship between the education and experience of the top management teams of venture capital firms (VCFs) and the firms' performance. We found that although general human capital had a positive association with the proportion of portfolio companies that went public [initial public offering (IPO)], specific human capital did not. However, we did find that specific human capital was negatively associated with the proportion of portfolio companies that went bankrupt. Interestingly, some findings were contrary to expectations from a human capital perspective, specifically the relationship between general human capital and the proportion of portfolio companies that went bankrupt. Future research is suggested.
LanguageEnglish
Pages1-21
Number of pages21
JournalJournal of Business Venturing
Volume20
Issue number1
DOIs
StatusPublished - 1 Jan 2005

Fingerprint

Industry
Education
Human capital theory
Proportion
Venture capital firms
Human capital
Specific human capital
General human capital
Initial public offerings
Top management teams
Firm performance

Cite this

Human capital theory and venture capital firms : exploring "home runs" and "strike outs". / Dimov, Dimo P.; Shepherd, Dean A.

In: Journal of Business Venturing, Vol. 20, No. 1, 01.01.2005, p. 1-21.

Research output: Contribution to journalArticle

@article{849fed6084db46f2a6b414cf509443c8,
title = "Human capital theory and venture capital firms: exploring {"}home runs{"} and {"}strike outs{"}",
abstract = "Using a human capital perspective, we investigated the relationship between the education and experience of the top management teams of venture capital firms (VCFs) and the firms' performance. We found that although general human capital had a positive association with the proportion of portfolio companies that went public [initial public offering (IPO)], specific human capital did not. However, we did find that specific human capital was negatively associated with the proportion of portfolio companies that went bankrupt. Interestingly, some findings were contrary to expectations from a human capital perspective, specifically the relationship between general human capital and the proportion of portfolio companies that went bankrupt. Future research is suggested.",
author = "Dimov, {Dimo P.} and Shepherd, {Dean A.}",
year = "2005",
month = "1",
day = "1",
doi = "10.1016/j.jbusvent.2003.12.007",
language = "English",
volume = "20",
pages = "1--21",
journal = "Journal of Business Venturing",
issn = "0883-9026",
publisher = "Elsevier",
number = "1",

}

TY - JOUR

T1 - Human capital theory and venture capital firms

T2 - Journal of Business Venturing

AU - Dimov, Dimo P.

AU - Shepherd, Dean A.

PY - 2005/1/1

Y1 - 2005/1/1

N2 - Using a human capital perspective, we investigated the relationship between the education and experience of the top management teams of venture capital firms (VCFs) and the firms' performance. We found that although general human capital had a positive association with the proportion of portfolio companies that went public [initial public offering (IPO)], specific human capital did not. However, we did find that specific human capital was negatively associated with the proportion of portfolio companies that went bankrupt. Interestingly, some findings were contrary to expectations from a human capital perspective, specifically the relationship between general human capital and the proportion of portfolio companies that went bankrupt. Future research is suggested.

AB - Using a human capital perspective, we investigated the relationship between the education and experience of the top management teams of venture capital firms (VCFs) and the firms' performance. We found that although general human capital had a positive association with the proportion of portfolio companies that went public [initial public offering (IPO)], specific human capital did not. However, we did find that specific human capital was negatively associated with the proportion of portfolio companies that went bankrupt. Interestingly, some findings were contrary to expectations from a human capital perspective, specifically the relationship between general human capital and the proportion of portfolio companies that went bankrupt. Future research is suggested.

UR - http://www.scopus.com/inward/record.url?scp=8144229493&partnerID=8YFLogxK

UR - http://dx.doi.org/10.1016/j.jbusvent.2003.12.007

U2 - 10.1016/j.jbusvent.2003.12.007

DO - 10.1016/j.jbusvent.2003.12.007

M3 - Article

VL - 20

SP - 1

EP - 21

JO - Journal of Business Venturing

JF - Journal of Business Venturing

SN - 0883-9026

IS - 1

ER -