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Empirical studies use the assumption of stability in individual risk attitudes when searching for a relationship between attitude to risk and the decision to become and survive as an entrepreneur. We show that risk attitudes do not remain stable but face endogenous adaption when starting a new...
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limited. In this paper, we show that entry into entrepreneurship itself plays a decisive role in shaping risk preferences. We … of entrepreneurship. The findings suggest that studies assuming that risk attitudes are stable over time suffer from …
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Empirical studies use the assumption of stability in individual risk attitudes when searching for a relationship between attitude to risk and the decision to become and survive as an entrepreneur. We show that risk attitudes do not remain stable but face endogenous adaption when starting a new...
Persistent link: https://www.econbiz.de/10013043584
In the standard venture capital contract, entrepreneurs have a large fraction of equity ownership in the companies they … aversion, higher initial assets, preferences for entrepreneurship over employment, and optimistic beliefs about the payoffs …
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