Table 2 Variables description and source
From: Entrepreneurial, institutional and financial strategies for FinTech profitability
Variable | Description | Source |
|---|---|---|
Panel A. Dependent variables | ||
Profitable | Dummy variable taking the value 1 if the FinTech company is profitable (return on assets is positive) | Sabi |
Profitability | Return on assets based on the net incomes and total assets at the end of the year | Sabi |
Panel B. Financial information | ||
Size | Total assets at the end of year t (in millions €) | Sabi |
Asset structure | Ratio: current assets to total assets at the end of year t | Sabi |
Liquidity | Ratio: current assets to current liabilities computed at the end of year t | Sabi |
Solvency | Ratio: shareholders’ equity to total assets computed at the end of year t multiplied by 100 | Sabi |
Leverage | Ratio: total sum of non-current liabilities and loans to shareholders’ equity computed at the end of year t | Sabi |
Indebtedness | Ratio: total internal funds to total equity computed at the end of year t | Sabi |
Efficiency | Ratio: operating revenue to the total sum of shareholders’ equity and noncurrent liabilities computed at the end of year t | Sabi |
Panel C. Entrepreneurship | ||
Entrepreneurship | Dummy variable taking the value 1 if the FinTech company is founded by an entrepreneur or a group of entrepreneurs | Dealroom.co & Crunchbase |
Number of founders | Number of founding partners | Dealroom.co & Crunchbase |
Single Entrepreneur | Dummy variable taking the value 1 if the FinTech company is founded by a single entrepreneur | Dealroom.co & Crunchbase |
Panel D. Digital presence | ||
Mobile app | Dummy variable taking the value 1 if the FinTech company has a mobile application for Android or IOS in year t | Dealroom.co & Crunchbase |
Born mobile app | Dummy variable taking the value 1 when the FinTech company has had a mobile application for Android or IOS since its foundation | Dealroom.co & Crunchbase |
Digital tracking | Search Volume Index taking a value between 0 and 100 provided by Google Trends | Google Trends |
Digitally tracked regionally | Dummy variable taking the value 1 if most of the digital tracking, based on Google Trends, comes from the same region in which the FinTech company is based | Google Trends |
Panel E. Funding | ||
Funding | Dummy variable taking the value 1 if the FinTech company has ever raised capital | Dealroom.co & Crunchbase |
VC | Dummy variable taking the value 1 if the FinTech company has ever raised venture capital | Dealroom.co & Crunchbase |
Initial VC | Dummy variable taking the value 1 if the FinTech company has raised capital through venture capital during its foundation (in an early stage) | Dealroom.co & Crunchbase |
Capital Seed | Dummy variable taking the value 1 if the FinTech company has ever raised seed capital | Dealroom.co & Crunchbase |
Initial seed capital | Dummy variable taking the value 1 if the FinTech company has raised seed capital in its foundation (in an early stage) | Dealroom.co & Crunchbase |
Debt financing | Dummy variable taking the value 1 if the FinTech company has ever raised capital through debt financing | Dealroom.co & Crunchbase |
Equity crowdfunding | Dummy variable taking the value 1 if the FinTech company has ever raised capital through equity crowdfunding | Dealroom.co & Crunchbase |
Public subsidy | Dummy variable taking the value 1 if the FinTech company has ever received a public subsidy | Sabi |
FinTech accelerator | Dummy variable taking the value 1 if the FinTech company has ever taken part in an incubator or FinTech accelerator program | Dealroom.co & Crunchbase |
Born accelerator | Dummy variable taking the value 1 when the FinTech company was born as part of an incubator or FinTech accelerator program | Dealroom.co & Crunchbase |
Bank investor | Dummy variable taking the value 1 if a bank has ever invested in the FinTech company | Dealroom.co & Crunchbase |
Panel D. Location | ||
Tech cluster | Dummy variable taking the value 1 if the FinTech is based at Madrid, Barcelona, or Valencia | Sabi |
Panel E. Robustness | ||
Log of sales | Natural logarithm of FinTech sales at the end of the year | Sabi |
Profitable (EBITDA > 0) | Dummy variable taking the value 1 if the ebitda of FinTech company is positive at the end of the year | Sabi |
Successful funding round | Dummy variable taking the value 1 if the FinTech has been able to conduct a successful funding round (VC or Capital Seed) | Dealroom.co & Crunchbase |
High Digital Impact | Dummy variable taking the value 1 for those FinTech firms whose online search volume index (by Google Trends) is above the annual mean for the FinTech sample | Google Trends |
High Bank Closure | Dummy variable taking the value 1 for those FinTech firms based at a province where the % change in bank branches from 2008–2017 is above the % change in bank branches for the whole country | Sabi & Bank of Spain |