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Date of Award
Bachelor of Science
SaaS is a software deployment method that allows customers to access software via the Internet. In the market today, SaaS firms consistently have higher market values than their non-SaaS competitors. This thesis hypothesizes that the structure of a SaaS firm is a driver of market value. Using a theoretical and empirical approach, this thesis identifies and analyzes key characteristics of SaaS firms in order to answer my research question: what about firm structure, if anything, is driving market value? An existing body of academic literature is helpful in defining the structure of the firm, while industry-specific literature provides assistance in showcasing trends and observing firm behavior. Additionally, an econometric analysis is run using a panel data set consisting of 67 firms and the popular valuation multiple EV/Revenue as a dependent variable to represent market value. The independent variables act as proxies for different aspects of firm structure. This thesis found evidence that the independent variables included have a significant and causal effect on EV/Revenue, which supports my hypothesis that SaaS firm structure drives value.
Allieri, Stephanie, "The Economics of SaaS". Senior Theses, Trinity College, Hartford, CT 2018.
Trinity College Digital Repository, https://digitalrepository.trincoll.edu/theses/708