Table 3. Definition of the variables and... | Emerald Publishing

Table 3.

Definition of the variables and expected correlations with the dependent variable (exit_value, namely, the natural log of the exit valuation)

Variable	Description	Expected correlation with Exit_value
Exit decision: IPO	Dummy variable equal to 1 if the exit occurs through an IPO; 0 otherwise (M&A)	+
Deal_stake	Natural log of the percentage equity capital sold at the exit	–
Investors: BA N_investors N_privateVC N_GVC	Dummy variable equal to 1 if BAs previously invested in a startup Total number of pre-deal investors Number of different independent and corporate VCs that invested in a startup Number of different governmental VCs that invested in a startup	+ + + +
Team: Avg_years_study Avg_years_work Women	Average number of years of academic education held by founders Average number of years of working experience held by founders Dummy variable equal to 1 if there is a woman among founders	+ + +
Control variables: Assets Net_profit Firm_age Manufacturing France Germany Northern_Europe Southern_Europe UK Benelux Other_country	Log of total company assets (year before the exit) Total company earnings (year before the exit) Natural log of (1+company age) Dummy variable equal to 1 if a startup is active in a manufacturing industry (Eurostat classification) Dummy equal to 1 if the firm is based in France Dummy equal to 1 if the firm is based in Germany Dummy equal to 1 if the firm is based in Denmark or Finland Dummy equal to 1 if the firm is based in Spain or Portugal Dummy equal to 1 if the firm is based in the UK Dummy equal to 1 if the firm is based in Belgium, the Netherlands or Luxembourg Dummy equal to 1 if the firm is based in other countries
Instrument: IPO_momentum	Number of IPOs registered in the sample countries in the three-year time slot around the firm foundation year
Heckman model: Prob_Exit	Inverse Mills' ratio of the probability to be acquired estimated by implementing a Heckman selection model

Variable	Description	Expected correlationwith Exit_value
Exit decision:IPO	Dummy variable equal to 1 if the exit occurs through an IPO; 0 otherwise (M&A)	+
Deal_stake	Natural log of the percentage equity capital sold at the exit	–
Investors:BAN_investorsN_privateVCN_GVC	Dummy variable equal to 1 if BAs previously invested in a startupTotal number of pre-deal investorsNumber of different independent and corporate VCs that invested in a startupNumber of different governmental VCs that invested in a startup	++++
Team:Avg_years_studyAvg_years_workWomen	Average number of years of academic education held by foundersAverage number of years of working experience held by foundersDummy variable equal to 1 if there is a woman among founders	+++
Control variables:AssetsNet_profitFirm_ageManufacturingFranceGermanyNorthern_EuropeSouthern_EuropeUKBeneluxOther_country	Log of total company assets (year before the exit)Total company earnings (year before the exit)Natural log of (1+company age)Dummy variable equal to 1 if a startup is active in a manufacturing industry (Eurostat classification)Dummy equal to 1 if the firm is based in FranceDummy equal to 1 if the firm is based in GermanyDummy equal to 1 if the firm is based in Denmark or FinlandDummy equal to 1 if the firm is based in Spain or PortugalDummy equal to 1 if the firm is based in the UKDummy equal to 1 if the firm is based in Belgium, the Netherlands or LuxembourgDummy equal to 1 if the firm is based in other countries
Instrument:IPO_momentum	Number of IPOs registered in the sample countries in the three-year time slot around the firm foundation year
Heckman model:Prob_Exit	Inverse Mills' ratio of the probability to be acquired estimated by implementing a Heckman selection model