Bankruptcy Law and Entrepreneurship

Armour, John; Cumming, Douglas J.

doi:10.1093/aler/ahn008

Cited by 282 publications

(272 citation statements)

References 53 publications

(37 reference statements)

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“…A very small ruin rate will reduce the number of replacements, the number of uncovered losses and thereby the 9 Since the normal distribution function is continuous, this implies that a decision maker's wealth distribution has a fixed point. 10 Our assumption is consistent with self employment under a rather 'forgiving' bankruptcy system such as the US (Armour andCumming 2005, Dosi 1990). In contrast, stricter bankruptcy laws (as in many European countries) tend to diminish entrepreneurship and risk taking.…”

supporting

confidence: 67%

Reference groups and variable risk strategies

Knudsen

2008

Journal of Economic Behavior & Organization

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NutzungsbedingungenThis is a PDF file of an unedited manuscript that has been accepted for publication. As a service to our customers we are providing this early version of the manuscript. The manuscript will undergo copyediting, typesetting, and review of the resulting proof before it is published in its final form. Please note that during the production process errors may be discovered which could affect the content, and all legal disclaimers that apply to the journal pertain.Page 1 AbstractThe present article examines two important effects that have been given scant attention in prior studies of variable risk strategies. The first effect, reference group sensitivity, is the degree to which decision makers' aspirations are sensitive to their reference group. In this paper we compare the performances of decision makers with alternative levels of reference group sensitivity. Second, we introduce the novel concept of community effect. This relates to mobility among multiple segregated reference groups. The performance of decision makers residing in a world with one single population is compared with that of decision makers who have the possibility, which is more or less costly, to switch between multiple populations. The results support the findings from previous studies that variable risk strategies are preferred over fixed risk. The study of a community of populations provides additional insights that both support and complement previous research.

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supporting

confidence: 67%

Reference groups and variable risk strategies

Knudsen

2008

Journal of Economic Behavior & Organization

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“…So higher tertiary enrolment rates only leads to more entrepreneurs if the share of services in the economy is sufficiently high, and vice versa. 15 Fifth, when considering the effect of the business regulations categories ÔGetting CreditÕ, ÔPaying taxesÕ and ÔClosing a businessÕ, the variable ÔPrivate bureau coverageÕ, is significantly positive suggesting that if better information about creditworthiness of potential borrowers is available, credit rationing by lenders to small businesses will occur less often (Armour and Cumming, 2005). The influence of tax systems seems to be marginal while for bankruptcy regulation we only find a counter-intuitive result for the necessity entrepreneurship rate (a negative sign on recovery rate).…”

Section: Rigidity Of Hours Indexmentioning

confidence: 99%

The Effect of Business Regulations on Nascent and Young Business Entrepreneurship

2007

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“…The legal origin and accounting standards have significant impact on the governance of private equity investments. Armour and Cumming (2008) Government programs hinder more, rather than help the development of private equity markets. Cullen and Gordon (2002) Taxes affect the entry and exit of business.…”

Section: Gompers and Lerner (2001)mentioning

confidence: 99%

Private Equity and Venture Capital Funds: What Drives the Demand and Supply?

Dias

Macedo

2016

BAR, Braz. Adm. Rev.

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This study investigates determinants for the demand and supply for PE/VC funds. Six factors were identified through Factor Analysis: Economic Activity, Development of Stock Markets, Corporate Governance, Social and Environmental Development, Entrepreneurship and Taxation. These factors were defined through 25 variables and transformed into five factors by factor analysis. The resulting factors were used in econometric models for investigating relationships among said factors and the fundraising of PE/VC funds first, and then with the amount invested by PE/VC funds. The results indicate that investments are adversely affected by the depth of the capital market: the PE/VC funds seek an exit strategy which the stock market offers through IPOs (Initial Public Offering). Other significant factors were protection of investors, social and environmental development and level of entrepreneurship. Different from expected, the economic activity was of low impact on demand. The result seems controversial but its lack of significance highlights the importance of the capital market (through IPOs as a way of disinvestment) as a key driver of the PE/VC market. Taxation was also not significant to the demand side, a fact which denotes that the government can influence the local PE/VC market, and that it should offer high enough discount rates or tax incentives to mitigate the effect of other barriers faced by the PE/VC market.

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Bankruptcy Law and Entrepreneurship

Cited by 282 publications

References 53 publications

Reference groups and variable risk strategies

Reference groups and variable risk strategies

The Effect of Business Regulations on Nascent and Young Business Entrepreneurship

Private Equity and Venture Capital Funds: What Drives the Demand and Supply?

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