This paper investigates a negative externality of new business creation. When being perceived as a good manager is a necessary condition to establish a firm in the future, we show that a priori talented managers may indulge in undertaking risky projects now. Indeed, such a choice renders more...

In this paper, we analyze how credit rationing in the market for funds induces would-be entrepreneurs both to build or preserve a good reputation and to accumulate cash through the projects they realize. More specifically, we consider employees who have the perspective of establishing their own...

We analyze empirically the determinants of Eurozone Treasury bills yields. Market microstructure as well as macroeconomic variables are found to significantly impact yields. Secondary trading in a centralized transparent electronic limit order book enhances liquidity and thus reduce yields....

This paper explores the impact of the organizational structure of a firm on its financing capacity. Unitary-form and multidivisional-form companies differ according to the distribution of tasks among managers. Within multidivisional firms, strategic decisions are taken by corporate headquarters...

About 90% of entrepreneurs in the high-tech and professional service industries were previously employed in the same sector. In this paper, we provide a theory for how aspiring entrepreneurs choose an employer. We contrast 'transparent' employers (or firms) promoting personal accountability and...