Failure Is an Option: Institutional Change, Entrepreneurial Risk, and New Firm Growth
Organization Science, Volume 28, Issue 1, 2017, Pages 93-112.
Does an institutional change that lowers failure barriers improve new firm growth? We take advantage of a quasi-natural experiment in Japan that drastically reduced the stringency of bankruptcy regulations to examine this question. Using longitudinal data over a 10-year period, we find that bankruptcy reform increases the rates of bankrup...More
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