Personal Bankruptcy Law and Entrepreneurship
January 2017
Working Paper Number:
CES-17-42R
Abstract
We study the effect of debtor protection on firm entry and exit dynamics. We find that more lenient personal bankruptcy laws lead to higher firm entry, especially in sectors with low entry barriers. We also find that debtor protection increases firm exit rates and that this effect is independent of firm age. Our results overall indicate that changes in debtor protection affect firm dynamics.
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:
econometric,
enterprise,
earnings,
entrepreneur,
entrepreneurship,
finance,
financing,
younger firms,
borrower,
loan,
bank,
bankruptcy,
lender,
debt,
wealth,
debtor,
filing,
creditor
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:
Bureau of Labor Statistics,
Longitudinal Business Database,
Alfred P Sloan Foundation,
Longitudinal Employer Household Dynamics,
Kauffman Firm Survey,
International Trade Research Report
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