Research Ine Paeleman

Abstract

Despite the growing popularity of venture studios, our current understanding of the phenomenon is still in its infancy and theoretical frameworks for studying it are lacking. In response, this project provides new insights into this recent phenomenon, and by doing so, will contribute to the broader fields of entrepreneurship and management. First, we lack empirical research on venture studios because a solid description or understanding of phenomenon is missing. In response, my first research objective bridges this gap by means of an exploratory study that describes, classifies, and compares venture studios. Second, while venture studios aim to develop efficient approaches for building startups through strategically sharing resources across their startups, researchers still have to explore how venture studios allocate these resources. In response, in my second research objective, I investigate the resource allocation process in venture studios Third, while practitioners presume that venture studios create startups that are of higher quality than traditional startups, we know surprisingly little about the performance of the startups they build. In response, my third research objective is to investigate impact of venture studio support on startup performance

Researcher(s)

• Promoter: Paeleman Ine

Research team(s)

• Accountancy and Finance

Project type(s)

• Research Project

Abstract

There has been a growing emphasis on the significance of big data and business analytics. Academic institutions use large volumes of data to effectively address research questions that generate and capture value for individuals, businesses, communities, and governments. The Orbis Global and Belfirst data warehouses, encompassing financial, accounting, social balance and governance data, allow scholars to explore the promise and opportunities for new theories and practices resulting in topnotch research. The Orbis Global and Bel-first databases are used as the primary data in our field. When investigating firm behaviors and actions, scholars always need basic knowledge about their financial figures (profitability, growth, assets, liabilities, etc.). Therefore, these Orbis Global and Belfirst databases are always used as the primary data source to which scholars add more specific data (survey-based data, data collected from more specific databases such as investors data). The funding proposal seeks to address an urgent issue: the significant price hikes of these data warehouses. The requested funding would serve as a bridging budget, providing a temporary solution while a more sustainable long-term financing strategy is being developed. Several research groups in the field of business and economics cannot continue doing the research they are currently doing if they no longer have access to these databases. These databases function as essential tools and instruments.

Researcher(s)

• Promoter: Paeleman Ine
• Co-promoter: Deloof Marc
• Co-promoter: De Meulenaere Kim
• Co-promoter: Hardies Kris
• Co-promoter: Jorissen Ann
• Co-promoter: Van Caneghem Tom
• Co-promoter: Vujić Sunčica

Research team(s)

• Accountancy and Finance

Project type(s)

• Research Project

Abstract

The research project consists of four parts and the formulation of policy recommendations: a study of entrepreneurs over the age of 55 (part 1), a study of pre-start-ups and recently started companies (part 2), a study of growing and fast-growing companies (part 3) and a study of the differences within sectors and provinces and the impact of crises (part 4). First of all, it should be possible to compare the results of the new research project with the results of the studies previously carried out in 2019. Part 1 of the study investigates whether entrepreneurs today are more aware of the problems of Succession and Takeover, whether they are better informed and whether they made use of the guidance options offered. The aim of the study is also to obtain a more detailed picture of the steps that managers or managing directors from the age of 56 are taking today to tackle the problem of Succession and Transfer within their company and their environment. Part 2 of the study examines the extent to which pre-starters consider taking over a business instead of starting a completely new activity. In the case of the target group of recently started entrepreneurs (up to a maximum of 3 years after the start), it is investigated why they have or have not considered taking over an existing company and why they have or have not taken over a company. Part 3 of the study examines the extent to which acquisitions are considered by growing and fast-growing companies. High (or ambitious) growth companies are defined as companies with at least 10 employees that can boast a growth rate of at least 20% per year in the last 3 years (OECD, 2007). Part 4 of the study asks for an examination of the differences between provinces and between sectors in terms of business transfers. It also calls for an examination of the impact of the various crises that have taken place in recent years on the intentions and results of business transfers. The data collection in the 3 parts will be based on an online survey among a large sample of companies in Flanders. Based on the findings in each section, concrete policy recommendations will be formulated in the policy areas of economy, innovation and entrepreneurship.

Researcher(s)

• Promoter: Laveren Eddy
• Co-promoter: De Cock Robin
• Co-promoter: Paeleman Ine
• Co-promoter: Vanderstraeten Johanna

Research team(s)

• Accountancy and Finance

Project type(s)

• Research Project

Abstract

Good investor protection is of primordial importance to ensure that investors are willing to invest in a company. This is important during the entire life of a firm and especially when the firms needs external funding, e.g. at incorporation or when going public. At incorporation, the legal requirements for firm entry guarantee a minimal level of investor protection. When firms go public, they should comply with the listing rules, which further improve shareholder protection. Moreover, firms can also voluntarily adopt additional protection mechanisms. During the life of a firm, protection against managerial misbehavior is ensured by, e.g., giving shareholders voting rights on the annual meeting. All over the world, laws on the entry of new firms, listing rules and voting rules, which are thus designed to guarantee investor protection, are currently under debate (e.g. debate on strict listing rules in China). As regulators today face similar problems as regulators in the past, I use history as a laboratory to investigate the impact of regulation. I go back to pre-World War II Belgium, which was at that time one of the leading economies in the world. I first examine the effect of the abolition of government permission to incorporate new firms (1873) and to go public (1867) (1). Next, I study the effect of the abolition of multiple voting shares (1934) (2). Finally, I investigate the voluntary adoption of protection mechanisms when legal investor protection was weak (3).

Researcher(s)

• Promoter: Paeleman Ine
• Fellow: Moortgat Leentje

Research team(s)

• Accountancy and Finance

Project type(s)

• Research Project

Abstract

One share, one vote is a basic principle that guarantees good protection of investors. However, the use multiple voting shares (MVS) increases all over the world. In this paper, we investigate the rise and fall of MVS in Belgium during the Interbellum. As from the 1920s, MVS became increasingly popular and in 1934 they are legally abolished. In order to enhance our understanding of MVS, we will investigate which kind of firms adopt MVS, how the adoption of MVS affects stock performance and how shareholder reacted to the 1934 abolishment act.

Researcher(s)

• Promoter: Paeleman Ine
• Co-promoter: Deloof Marc

Research team(s)

• Accountancy and Finance

Project type(s)

• Research Project

Abstract

One of the most noteworthy attempts to increase the credibility and awareness of social entrepreneurship is the B Corporation certification. Certified B Corps are for-profit firms certified by the non-profit B Lab to meet rigorous standards of social and environmental performance, accountability, and transparency. To date, our theoretical and empirical understanding of how the financing, performance and survival of B Corps differ from commercial ventures remains scarce. This limited understanding is an important issue because financing is a crucial resource for ventures to develop and grow. Moreover, firms need to understand better the short- and long-term internal effects of B Corp certification while prior research on certification in general has largely adopted an external focus. Next, previous studies have almost exclusively used samples of US B Corps. However, B Corps can be found across the globe. We lack a detailed understanding of how national systems of corporate governance, which are crucial in explaining access to external funding and availability of external funding, uniquely influence the financing and development of B Corps. This dissertation addresses the above issues and investigates for-profit social ventures in depth.

Researcher(s)

• Promoter: Paeleman Ine
• Fellow: Cadenovic Jovana

Research team(s)

• Accountancy and Finance

Project type(s)

• Research Project

Abstract

This network will respond to calls from a multidisciplinary perspective by addressing concrete challenges within three main research topics: (1) start-up and scale-up governance, (2) corporate governance and family governance in family firms, and (3) heterogeneous financing and governance implications in private firms. This WOG brings scholars together from different disciplines, i.e., corporate finance, management, entrepreneurship and strategy. Improving the collaboration between and the internationalization of the different research units will advance the international recognition of Flemish scientific research that focuses on "Governance in Private Firms". Currently, research units work on their own or bilateral. The goal of this WOG is (a) to develop new theoretical and conceptual approaches to address these challenges, (b) to reflect on methodological approaches to examine these challenges, (c) to collect quality research datasets including private firms among the world, and (d) to exchange and discuss research proposals of the different research units to examine the complex research stream of "Governance in Private Firms" from an inter- and multidisciplinary perspective with the result of joint research projects. The WOG will conduct a number of yearly activities, i.e., a "Young Researcher Workshop" and a guest lectures given by one of the foreign partners. Further, this WOG will organize PDW's (Personal development Workshop) at international conferences, will stimulate double PhD degrees and research visits among the different research units, involvement in external PhD committees and submit at least two joint and externally funded research projects. A clear research agenda is proposed: In the first year, a proposal of a special issue in a journal will be submitted. In the second year, the WOG will start with the organization of a conference organized in one of the Flemish research units. In the third year, the conference will take place. The best papers submitted to the conference get the opportunity to submit their paper for the special issue. In the fourth year, the members of the WOG start with the preparation of submitting a joint and large-scale research funding proposal. A symposium will be organized. In the fifth year, the WOG will submit its research funding proposal.

Researcher(s)

• Promoter: Paeleman Ine

Research team(s)

• Accountancy and Finance

Project type(s)

• Research Project

Abstract

In order to survive, closely held family firms face a mounting pressure to adapt to rapidly changing competitive environments. However, many of these organizations are often found to be strategically inert and conservative to changes. A key question is under which conditions family firms can overcome inertial forces and reach successful strategic changes. Hereby we make a distinction between the initiation of strategic change (antecedents) and the implementation of strategic change (consequences). This project aims to reach four central scientific objectives which emerged from four important gaps in the literature. These objectives are summarized as follows: • Cognition: we investigate how and when Management Control Systems (MCS) influence a family firm's knowledge management process in such a way that new strategies are discovered and initiated and subsequently successfully implemented. Main questions are: Do family businesses need different MCS in different stages of the strategy process (initiation vs. implementation)? Is the relationship between MCS characteristics, knowledge management, capacity building and strategic change context-dependent? Which combination of internal knowledge building and external knowledge sourcing leads to knowledge generation that is supportive of strategic change and stimulates change readiness? • Affect: we examine how Socioemotional Wealth preservation, learning frames, team psychological safety and organizational learning culture impacts upon readiness for strategic change in family firms. We focus on the affective dimension and take a multilevel perspective (individual, group, organization). Central questions are: How do actors in family firms develop readiness for strategic change and what are key influences and catalysts? How do learning frames influence individual cognitive and affective change readiness in a family firm setting? How does the framing of new situations by leaders influence other's framing activities and readiness for change? • Governance structures: we examine the interactions between family firm's ownership, management and board and the influence of these interrelated family governance mechanisms on strategic change in family firms. Key questions are: How do the interrelationships of Top Management Teams (TMT) and board composition influences strategic change initiation and implementation in family firms? What is the role of family governance mechanisms and how do they interact with firm governance structures (TMT and Board of directors) in facilitating strategic change in family firms? • Resources: we will investigate the role and impact of financing constraints in the strategic change process from a supply as well as demand side perspective. We will focus on alternative financing sources to initiate and implement strategic change and potential bottlenecks. We will also focus on intergenerational differences.

Researcher(s)

• Promoter: Jorissen Ann
• Co-promoter: Laveren Eddy
• Co-promoter: Paeleman Ine

Research team(s)

• Accountancy and Finance

Project type(s)

• Research Project

Abstract

One of the most noteworthy attempts to increase the credibility and awareness of social entrepreneurship is the B Corporation certification. Certified B Corps are for-profit firms certified by the non-profit B Lab to meet rigorous standards of social and environmental performance, accountability, and transparency. To date, our theoretical and empirical understanding of how the financing, performance and survival of B Corps differ from commercial ventures remains scarce. This limited understanding is an important issue because financing is a crucial resource for ventures to develop and grow. Moreover, firms need to understand better the short- and long-term internal effects of B Corp certification while prior research on certification in general has largely adopted an external focus. Next, previous studies have almost exclusively used samples of US B Corps. However, B Corps can be found across the globe. We lack a detailed understanding of how national systems of corporate governance, which are crucial in explaining access to external funding and availability of external funding, uniquely influence the financing and development of B Corps. This dissertation addresses the above issues and investigates for-profit social ventures in depth.

Researcher(s)

• Promoter: Paeleman Ine
• Fellow: Paeleman Ine

Research team(s)

• Accountancy and Finance

Project type(s)

• Research Project