Abstract
This paper, as part of the PRIN "University spin-offs: competitiveness, attractiveness and value", intends to increase the knowledge on the performance of university spinoffs, studied until now especially for the dynamics of constitution and development that characterize them. The study attempts primarily to measure the financial performance of Italian university spinoffs and Italian innovative start-ups and SMEs. Furthermore, it aims to determine whether the Italian academic spinoffs's financial condition tends to be different respect to Italian innovative companies. In order to reach these objectives, the financial statement analysis, with financial ratios to ascertain profitability, liquidity and efficiency profile, and the t-test have been used. University spinoffs have higher value of ratios if compared to innovative startups and SMEs. Furthermore, t-test highlights the existence of significant differences in the profitability, liquidity, structure and efficiency profile between two groups of companies. Keywords: university spinoffs, innovative companies, financial performance, financial ratios DOI: 10.7176/RJFA/12-23-05 Publication date: December 31 st 2021
Highlights
In recent year the role of universities has been changing, assuming today as a basilar pillar in the construction of knowledge societies
- to compare the profitability, liquidity, structure and efficiency status of university spinoffs and innovative companies; Adopting the ratio analysis method, the analysis focuses on these indicators: ROE, ROA, Profit margin, EBITDA margin, EBIT margin AND Cash flow/Operating revenue ratio for the profitability; Current ratio, Liquidity ratio, Shareholders liquidity ratio, Solvency ratio and Gearing ratio for the liquidity and structure analysis
This investigation is part of a line of research related to the PRIN project "University spin-offs: competitiveness, attractiveness and value" aimed at analyzing the performance, riskiness and financial policies as well as the creation of value of academic spinoffs compared to innovative companies
Summary
In recent year the role of universities has been changing, assuming today as a basilar pillar in the construction of knowledge societies. University spin-offs, on the other hand, can rely on specific public funding; informal investors are increasingly present in the stock market, such as incubators, business angels (Bessière et al, 2020;), venture capitalists (Cumming and Zambelli, 2017; Cumming and Zambelli, 2013; Zambelli, 2014) and, more recently, equity crowdfunding (Daldrup et al ., 2020) and venture philanthropy (Bessière et al, 2020), naturally interested in investing in companies with high development and growth potential. Their participation in the risk capital of the spin-offs is still limited, especially in Italy (Stefanelli et al, 2020). Starting from this gap in literature, the study aims to increase the knowledge on the performance of university spinoffs, studied until now for their dynamics of constitution and development, and to identify any differences with respect to innovative companies
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