Wissenschaftlicher Mitarbeiter und Doktorand
nach Vereinbarung
Angels and Demons: The Negative Effect of Employees' Angel Investments on Corporate Innovation
Does a firm benefit if its employees personally invest in start-ups? To answer this question, we exploit novel data, which link angel investors in the US with their employment history. A firm's economic value of patents decreases by 3% – 5% when its employees personally invest in start-ups. We establish causality with matching and instrumental variable regressions, which rely on quasi-exogenous competition in the early-stage financing market. The negative relationship is stronger for angel investors in innovation-related roles, if the start-ups are more time consuming, and for exploratory patents. Compared to other angel investors, angel investors employed at corporations have a positive impact on future innovation and success of their invested start-ups. Our results indicate that angel investors divert time and effort from their employers to their personal investments. We highlight a trade-off between the benefits of angel investors for start-ups and the costs for their employer.
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Kurzprofil
- 11.2018 – 08.2020 Wissenschaftlicher Mitarbeiter am Lehrstuhl von Prof. Dr. Erik Theissen
- seit 09.2017 Doktorand an der Graduate School of Economics and Social Sciences
- 2014 – 2017 Master in Management Mannheim
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Interessensgebiete
- Entrepreneurial Finance
- Innovation and Competition
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Forschungsprojekte
Angels and Demons: The Negative Effect of Employees' Angel Investments on Corporate Innovation
Does a firm benefit if its employees personally invest in start-ups? To answer this question, we exploit novel data, which link angel investors in the US with their employment history. A firm's economic value of patents decreases by 3% – 5% when its employees personally invest in start-ups. We establish causality with matching and instrumental variable regressions, which rely on quasi-exogenous competition in the early-stage financing market. The negative relationship is stronger for angel investors in innovation-related roles, if the start-ups are more time consuming, and for exploratory patents. Compared to other angel investors, angel investors employed at corporations have a positive impact on future innovation and success of their invested start-ups. Our results indicate that angel investors divert time and effort from their employers to their personal investments. We highlight a trade-off between the benefits of angel investors for start-ups and the costs for their employer.