| dc.creator |
Schäfer, Dorothea |
|
| dc.creator |
Talavera, Oleksandr |
|
| dc.date |
2006 |
|
| dc.date.accessioned |
2013-10-16T07:00:26Z |
|
| dc.date.available |
2013-10-16T07:00:26Z |
|
| dc.date.issued |
2013-10-16 |
|
| dc.identifier |
http://hdl.handle.net/10419/18529 |
|
| dc.identifier |
ppn:519891546 |
|
| dc.identifier.uri |
http://koha.mediu.edu.my:8181/xmlui/handle/10419/18529 |
|
| dc.description |
In this paper we investigate whether small-scale businesses face financial constraints that affect their survival. We develop a model of moral hazard in which financial constraints arise endogenously. The model predicts that higher private assets relax financial constraints and have a positive effect on the firm's probability of survival. We test this proposition using German Socio-Economic Panel (GSOEP) data, which cover the period 1984{2004. The release from financial constraints is measured by inheritance. The empirical analysis confirms that the entrepreneur has a higher propensity to stay in business when she inherits capital. This effect is particularly strong for entrepreneurs that switch from self-employment into wage employment. These results are consistent with hypothesis that financial frictions have a perceptible impact on bankruptcy among small business firms. |
|
| dc.language |
eng |
|
| dc.publisher |
Deutsches Institut für Wirtschaftsforschung (DIW) Berlin |
|
| dc.relation |
DIW-Diskussionspapiere 636 |
|
| dc.rights |
http://www.econstor.eu/dspace/Nutzungsbedingungen |
|
| dc.subject |
G30 |
|
| dc.subject |
J20 |
|
| dc.subject |
L10 |
|
| dc.subject |
ddc:330 |
|
| dc.subject |
Entrepreneurship |
|
| dc.subject |
survival |
|
| dc.subject |
financial constraints |
|
| dc.title |
Small-Scale Business Survival and Inheritance: Evidence from Germany |
|
| dc.type |
doc-type:workingPaper |
|