Creative Destruction and the Valuation of Incumbents
نویسنده
چکیده
I study empirically the causal effects of creative destruction on incumbent firms. Due to concerns about omitted variables, I exploit characteristics of venture capital industry to derive an instrument for startup activity in an industry; I find that industry-level activity is strongly correlated with public market returns of firms funded by venture capital firms in the industry. I then find that creative destruction has large effects on the valuation of incumbent firms. Moreover, these effects do not appear to vary with industry characteristics. ∗University of Chicago Booth School of Business; email: [email protected]. I would like to thank the members of my dissertation committee, Paul Gompers, Steven Kaplan, Tobias Moskowitz, and Amir Sufi, for their support and comments. I would also like to thank Marina Niessner, Savina Rizova, and Jhe Yun for insightful discussions.
منابع مشابه
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