Congratulations to Professor Paul P. Momtaz for winning a WAIFC Young Academic Award 2022 for his paper on Financing Sustainable Entrepreneurship: ESG Measurement, Valuation, and Performance in Token Offerings which was recently published in the Journal of Business Venturing.
The award was presented in Casablanca at the Sustainable Finance Dialogue, a joint initiative between the World Alliance of International Financial Centers (WAIFC) and the UNDP Financial Centres for Sustainability (FC4S) network, the green finance initiative led by the United Nations Development Program (UN DP).
Professor Momtaz joined the Professorship of Entrepreneurial Finance at TUM SoM just recently. His paper looks at sustainable Entrepreneurship (SE), which seeks to attain profitability and sustainability goals.
A major research gap concerns the economic attractiveness of SE for entrepreneurs and investors. The question is ambiguous because sustainability orientation creates costly constraints, while startups cannot fully appropriate their positive externalities. Paul Momtaz and co-author Sasan Mansouri relate startups’ Environment, Society, and Governance (ESG) properties obtained from a machine-learning approach (https://lnkd.in/eiJv_4ti) to SE valuation and performance in token offerings.
Startups with salient ESG goals are able to raise financing at more favorable valuations, incentivizing entrepreneurs to adopt ESG goals in the first place. However, their post-funding performance is weaker than in conventional startups, suggesting that investors incur a relative financial loss for backing sustainability-oriented entrepreneurs.
➡️Download the paper: https://lnkd.in/ectuHchS
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