Bankruptcy Law and Entrepreneurship Development: a Real Options Perspective
نویسندگان
چکیده
We develop a real options perspective to explore how an entrepreneur-friendly bankruptcy law can encourage entrepreneurship development at the societal level. If bankrupt entrepreneurs are excessively punished for failure, they may let inherently high-risk but potentially high-return opportunities pass. We suggest that a more entrepreneur-friendly bankruptcy law, informed by a real options logic, can encourage more active and vibrant entrepreneurship development. We also discuss the implications of the role of venture capital and stigma in the effectiveness of an entrepreneur-friendly bankruptcy law.
منابع مشابه
AN EMPIRICAL EXAMINATION OF â•œBARRIER TO EXITâ•š: HOW DOES AN ENTREPRENEUR-FRIENDLY BANKRUPTCY LAW AFFECT ENTREPRENEURSHIP DEVELOPMENT AT A SOCIETAL LEVEL?
Does an entrepreneur-friendly bankruptcy law encourage more entrepreneurship development at a societal level? How does bankruptcy law affect entrepreneurship development around the world? Drawing on a real options perspective, we argue that if bankrupt entrepreneurs are excessively punished for failure, they may pass potentially high-return but inherently high-risk opportunities. Amassing a lon...
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