Essays on diversity and new venture performance
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I analyze how various aspects of diversity impact new venture performance. In the first study, I find that credit riskiness and assets of a venture mediate the gap in performance, revenues and profits between Black and White owned ventures. In my second study, I examine diversity in same industry work experience and education. I find that same industry work experience diversity has no impact on venture survival but level of educational diversity has a non-monotonic effect on survival. Finally, in the third study, I find that use of adequate controls leads to no gap in performance between male versus female-owned ventures. However, certain owner characteristics such as same industry work experience and number of hours worked and venture level characteristics such as technology level and incorporation status lead to significant gaps in survival, revenues and profits between male and female-owned ventures. I utilize the confidential Kauffman Firm Survey, an extensive dataset of new ventures started in 2004 in the US and tracked till 2011, to conduct the analyses. I discuss implications of my findings for research, investors and entrepreneurs.