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€™ past failure for investors' decisions. Our motivating insight is that failure can be due to bad luck, lack of skill or both …. Therefore, failure conveys ambiguous information about skill. We predict that investors will discount entrepreneurs that … experienced past failure. However, in the presence of a signal of skill, the magnitude of the failure discount is reduced. We test …
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failure for investors' decisions. Our motivating insight is that failure can be due to bad luck, lack of skill or both …. Therefore, failure conveys ambiguous information about skill. We predict that investors will discount entrepreneurs that … experienced past failure. However, in the presence of a signal of skill, the magnitude of the failure discount is reduced. We test …
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Two recent papers examine the impact of corporate bankruptcy laws on new business start-ups in 29 countries over 1990 - 2008 (Peng et al., 2010; Lee et al., 2010). In this commentary, I briefly point out two significant issues which future researchers might want to consider. First, several countries...
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