Work

Does Individual Performance Affect Entrepreneurial Mobility? Empirical Evidence from the Financial Analysis Market

Year: 2007

Type: report

Abstract: Our paper contributes to the studies on the relationship between workers' human capital and their decision to become self-employed as well as their probability to survive as entrepreneurs.Analysis from a panel data set of research analysts in investment banks over 1988-1996 reveals that star analysts are more likely than non-star analysts to become entrepreneurs.Furthermore, we find that ventures started by star analysts have a higher probability of survival than ventures established by non-star analysts.Extending traditional theories of entrepreneurship and labor mobility, our results also suggest that drivers of turnover vary by destination: (a) turnover to entrepreneurship and (b) other turnover.In contrast to turnover to entrepreneurship, star analysts are less likely to move to other firms than non-star analysts.

Source: National Bureau of Economic Research

DOI: 10.3386/w13633

Authors: Boris Groysberg, Ashish Nanda, M. Julia Prats

Institutions: National Bureau of Economic Research, Harvard University, IESE Business School, University of Pennsylvania

Language: English

Topic: Entrepreneurship Studies and Influences

Subfield: Management of Technology and Innovation

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

Funder: Harvard Business School

OpenAlex ID: W1519021529

Cites: 28

Cited by: 39

Related to: 10