S-WoPEc
 
Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
The Economic Research Institute, Stockholm School of Economics SSE/EFI Working Paper Series in Business Administration

No 2009:10:
Reconceptualizing Entrepreneurial Exit: Divergent Exit Routes and Their Drivers

Karl Wennberg (), Johan Wiklund (), Dawn DeTienne () and Melissa Cardon ()

Abstract: We develop a conceptual model of entrepreneurial exit which includes exit through liquidation and firm sale for both firms in financial distress and firms performing well. This represents four distinct exit routes. In developing the model, we complement the prevailing theoretical framework of exit as a utility-maximizing problem among entrepreneurs with prospect theory and its recent applications in liquidation of investment decisions. We empirically test the model using two Swedish databases which follow 1,735 new ventures and their founders over eight years. We find that entrepreneurs exit from both firms in financial distress and firms performing well. In addition, commonly examined human capital factors (entrepreneurial experience, age, education) and failure-avoidance strategies (outside job, reinvestment) differ substantially across the four exit routes, explaining some of the discrepancies in earlier studies

Keywords: Entrepreneurial Exit; Prospect Theory; Human Capital; (follow links to similar papers)

41 pages, February 10, 2009

Forthcoming, Journal of Business Venturing

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

hastba2009_010.pdf    PDF-file (260kB) 
Download Statistics
This paper is forthcoming as:
Wennberg, Karl, Johan Wiklund, Dawn DeTienne and Melissa Cardon, 'Reconceptualizing Entrepreneurial Exit: Divergent Exit Routes and Their Drivers', Journal of Business Venturing.



Questions (including download problems) about the papers in this series should be directed to Helena Lundin ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joakim Ekebom

Handle: RePEc:hhb:hastba:2009_010 This page was generated on 2014-12-14 19:16:17