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Loews Philadelphia, Commonwealth Hall A1
American Finance Association
CEOs and Entrepreneurs
Friday, Jan. 5, 2018 8:00 AM - 10:00 AM
- Chair: Dirk Jenter, London School of Economics
Entrepreneurship and Information on Past Failures: A Natural Experiment
AbstractWe analyze how public information on past entrepreneurial failure affects an entrepreneur's ability to borrow. We exploit a policy shock from 2013 in France, which eliminated a highly salient public reporting to banks of managers involved in non-fraudulent corporate liquidations. We find that the elimination of this flagging system makes failed entrepreneurs significantly more likely to restart a business or to borrow from a surviving business, despite the fact that bankers can find the failure information from other public sources for a small cost. The effect is more pronounced for industries where failure is a stronger signal about entrepreneurial ability. Restarters create companies that have a higher probability of default.
What Prevents Female Executives from Reaching the Top?
AbstractExceptionally rich data from Sweden makes it possible to study the gender gap in executives’ career progression and to investigate its causes. In their forties, female executives are about one-half as likely to be large-company CEOs and about one-third less likely to be high earners than males. Abilities, skills, and education likely do not explain these gaps because female executives appear better qualified than males. Instead, slow career progression in the five years after the first childbirth explains most of the female disadvantage. During this period, female executives work on average shorter hours than males and are more often absent from work. These results suggest that aspiring women may not reach the executive suite without trading off family life.
University of Virginia
- G3 - Corporate Finance and Governance