We are pleased to announce that the article “Exploring the Signaling Effect of B Corp Certification in Entrepreneurial Finance” by Thilo Pollmeier, Mirko Hirschmann, and Christian Fisch has been published in the Journal of Cleaner Production (February 2025).
🔗 Read the article (Open Access via Elsevier)
About the Paper:
B Corp certification signals a venture’s adherence to social and environmental standards, but does it also influence funding outcomes? Drawing on signaling theory, the authors analyze a global dataset of 1231 certified and 1231 matched non-certified ventures using propensity score matching and an instrumental variables approach.
The study finds that:
- B Corp certification significantly increases a venture’s likelihood of securing entrepreneurial finance.
- Higher B Corp scores—indicating stronger signals—further enhance funding success.
- The positive effect is especially pronounced when attracting impact investors.
This research highlights how voluntary sustainability standards like B Corp certification can serve as credible signals in entrepreneurial finance markets and offers practical implications for entrepreneurs, investors, and policymakers alike.
Background: B Corp certification is a third‐party certification that evaluates a company’s social, environmental, and governance practices, providing a transparent benchmark for business practices. With over 9,000 certified B Corps in more than 90 countries, B Lab has built a global network with the mission to transform businesses to balance profit with purpose.
Full citation:
Pollmeier, T., Hirschmann, M., & Fisch, C. (2025). Exploring the signaling effect of B Corp certification in entrepreneurial finance. Journal of Cleaner Production, 493, 144978. https://doi.org/10.1016/j.jclepro.2025.144978