CEFS produces top quality academic research in the fields of entrepreneurship and finance. Together we endeavour to conduct world-class research in several themes within the entrepreneurship and finance disciplines with a particular emphasis on entrepreneurial finance. A consistent part of this research is industry-financed.

Members of CEFS are publishing in top quality international academic journals such as Journal of Business Finance and Accounting, European Financial Management Journal, European Accounting Review, Journal of Asset Management, Zeitschrift für betriebswirtschaftliche Forschung, Zeitschrift für Betriebswirtschaft, OR Spektrum, Kredit und Kapital, etc. Moreover, they are present on international academic conferences such as the annual meetings of the European Finance Association, European Financial Management Association, Academy of Entrepreneurial Finance, German Finance Association, etc.

Within the scope of its research CEFS collaborates with selected industry partners on a series of projects, including leading investment and consulting companies as well as financial intermediaries.

 

Exemplary ongoing research fields are:

1. LBOs

Topics related to the private equity asset class are core topic of CEFS research. For example, using our unique proprietary data base of deal-level gross cash flows we want to add to our understanding of performance drivers in this alternative asset class. Current projects include:

• Buyout Performance Returns & Persistence (Nils Dorau, Daniel Urban (Erasmus University Rotterdam), Tim Jenkinson (Oxford), Reiner Braun)

• The Hidden Cost of Private Equity: Cash Holdings and Unfunded Commitments (Mark Jansen (University of Utah), Feng Zhang (University of Utah), Reiner Braun)

• Co-Investment Performance (Christoph Schemmerl, Tim Jenkinson (Oxford), Reiner Braun)

• Replicating PE Returns (Christoph Schemmerl)

• Acquirer Motives in Trades Sales and Returns to LBOs (David Rody, Reiner Braun)

• Window Dressing in PE (Max Schmidt, Reiner Braun)

• International Evidence on LBO Value Creation (Alexander Jürgens, Reiner Braun)

• Value Creation in German LBOs and the implications for stakeholders (Fabian Söffge, Reiner Braun)

• Investment Style Drift and Returns in PE (David Rody, Reiner Braun)

• Specialization vs. Diversification and PE Fund Returns (Daniel Urban (Erasmus University Rotterdam), Reiner Braun)

• Leverage, Competition and Returns in LBOs (Anna Gerl, Nick Craig, Reiner Braun)

• GP Value Creation Styles and Performance Persistence (Anna Gerl, Nick Craig, Reiner Braun)

2. Venture Capital

At CEFS, we want to enhance our understanding of how venture capital can help foster innovation and growth. Furthermore, often using our proprietary data base of deal-level gross cash flows we adopt an investor perspective to investigate investment patterns and returns. Current projects include:

• Non-domestic venture capital and the fate of such ventures (Stefan Weik, Reiner Braun)

• How Post-Money Valuations Overstate Real Ventue Values (Nick Craig, Mark Jansen (University of Utah), Reiner Braun)

• VC Returns to Women-Lead Ventures (Nick Craig, John Hatfield (University of Texas at Austin), Reiner)

• Cost of Experimentation, Investment Patterns and Returns in VC (Martin Diessner, Reiner Braun)

• Social Media Coverage and VC Investments (Barbara Stolz, Andranik Tumasjan (Universität Mainz), Reiner Braun)

• Machine-learning based investment decisions in VC (André Retterath)

• 15 Years after: how the German economy has benefited from Neuer Markt (Sarah Theinert. , Reiner Braun)

• Patent-based investment funds (Svenja Jarchow, Andrea Röhm)

• Corporate Venture Capital: Trust building characteristics from an entrepreneur's perspective (Stefanie Weniger (Harvard University), Svenja Jarchow)

• Corporate Venture Capital: Exit scenarios (Stefanie Weniger (Harvard University), Svenja Jarchow)

• Research-based spin-offs (Carolin Bock (TU Darmstadt), Alexander Huber, Svenja Jarchow)

• The Role of Prosocial Identities in Sustainable Businesses: Investigating Sustainable Investors (Daniela Gimenez-Jimenez, Svenja Jarchow) 

3. Business Angels and early stage financing

As often times first investors, business angels play a key role as enablers of start-ups. Yet, how do they select, being private people and investing their own money? Besides Angels, we find a wide array of investments or support through ressource appropriation for early stage ventures.

• Business Angel: Similarity and Success (Svenja Jarchow, Barbara Stolz)

• The influence of early stage financing on regional development (Svenja Jarchow, Matthias Menter (Universität Jena))

• Absorptive capacity of inter-organizational startup-researcher teams: The influence of knowledge complementarity and alliance management capabilities (Sascha Mader, Svenja Jarchow)

4. Behavioral Entrepreneurial Finance

Assessing phenomena in the field of entrepreneurial finance from a behavioral perspective is a promising path to gain a better understanding of decision patterns observed. Current research projects adopting this perspective include:

• Risk-Taking and Effort-Giving Under Private Equity Incentive Systems (Oliver Bauer, Sara Utmishi)

• VC Investment Decision Heuristics (Sara Utmishi)

• Non-financial Drivers of Entrepreneur’s Funding Decision (Sarah Theinert, Reiner Braun)

5. Ownership structures, family firms and foundation-owned firms

Ownership structures influence companies in a variety of aspects. Special interest in our research is on family firms and foundation-owned firms. Current research projects include:

• Event-study on listed foundation-owned firms (Ann-Kristin Achleitner et al.)

• Performance differences between various types of foundation-owned firms (Ann-Kristin Achleitner, Jörn Block (Uni Trier), Florian Hosseini, Svenja Jarchow, Nadine Kammerlander (WHU)

• Compensation report transparency – Evidence of Camouflage? (Iris Pfeiffer, Svenja Jarchow)

6. Corporate Finance and Corporate Governance

A wide array of topics if covered in the field of corporate finance and corporate governance:

• Owner and board structures

• Management compensation and turnover

• Capital Structure and Dividend policy

• Family firms

• Private equity and venture capital

• Equipment as a service: The transition towards usage-based business models (Isabella Stojkovski, Ann-Kristin Achleitner, Thomas Lange)

7. Valuation and Risk Management

• Firm valuation

• Cash-flow risk modeling

• Project valuation

• Financing of infrastructure and energy projects

• Risk management