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Financial theory creates a puzzle. Some authors argue that high-risk entrepreneurs choose debt contracts instead of … the role of risk for the choice of the method of financing. Since risk is not directly observable we use different … indicators for financial and project risk. It turns out that our data generally confirms the hypothesis that the probability that …
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Because time is a key determinant of entrepreneurial decision making, time-to-event models are ubiquitous in entrepreneurship. Widespread econometric misconception, however, may cause complicated biases in existing studies. The reason is spurious duration dependency, a complicated form of...
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We analyze the effect of industry, region and time on new-business survival rates by means of a multi-dimensional approach. The data relate to West German districts in the 1983-2000 period. The survival chances of start-ups tend to be relatively low in industries characterized by a high minimum...
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financial support and a rough measure of risk tolerance. The most striking result is the lack of explanatory power of the …
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. Enterprise formation is subject to future market risk and is shaped by labor market institutions in the post-entry stage. The …
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Entrepreneurs are often faced with problems regarding start-up financing. But compared to novice entrepreneurs, experienced entrepreneurs should have both more knowledge and better contacts, which should potentially reduce the occurrence of problems and affect finance composition. However,...
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