Template-Type: ReDIF-Paper 1.0
Author-Name: stefano Colombo
Author-X-Name-First: Stefano
Author-X-Name-Last: Colombo
Author-Email: stefano.colombo@unicatt.it
Author-Workplace-Name: DISCE, Università Cattolica
Author-Name: Luca Grilli
Author-X-Name-First: Luca
Author-X-Name-Last: Grilli
Author-Email: luca.grilli@polimi.it
Author-Workplace-Name: Department of Mangement, Economics and Industrial Engineering-Politecnico di Milano
Title: Another unconsidered sinister effect of indusrty-specific crises? On the possible emergence of adverse selection phenomena on the survival of entrepreneurial ventures.
Abstract: This article explores the possibility that under an intensely negative industry-specific shock, the commonly detected
positive relationship between the human capital of founders and the survival prospects of start-up businesses may
actually be reversed. Starting from an analysis of the issue from a theoretical perspective in order to derive the
necessary and sufficient conditions for the emergence of these adverse selection phenomena in entrepreneurship, the
study examines a sample of 179 Italian start-ups operating in the ICT services market created during the boom period
from 1995 to early 2000. Econometric analyses provide evidence that, during an intense industry crisis (i.e., early 2000
to 2003), entrepreneurs with a substantial amount of human capital may pursue an exit strategy.
Length: 14
Creation-Date: 2010-07
File-URL: http://www.unicatt.it/Istituti/EconomiaFinanza/Quaderni/ief0098.pdf
File-Format: Application/pdf
File-Function: First version, 2010
Number: ief0098
Classification-JEL: L26; L86
Keywords: High-tech entrepreneurship; Adverse selection; Industry crises.
Handle: RePEc:ctc:serie3:ief0098