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Does Individual Performance Affect Entrepreneurial Mobility? Empirical Evidence from the Financial Analysis Market

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  • Boris Groysberg
  • Ashish Nanda
  • M. Julia Prats
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    Abstract

    Our paper contributes to the studies on the relationship between workers' human capital and their decision to become self-employed as well as their probability to survive as entrepreneurs. Analysis from a panel data set of research analysts in investment banks over 1988-1996 reveals that star analysts are more likely than non-star analysts to become entrepreneurs. Furthermore, we find that ventures started by star analysts have a higher probability of survival than ventures established by non-star analysts. Extending traditional theories of entrepreneurship and labor mobility, our results also suggest that drivers of turnover vary by destination: (a) turnover to entrepreneurship and (b) other turnover. In contrast to turnover to entrepreneurship, star analysts are less likely to move to other firms than non-star analysts.

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    Bibliographic Info

    Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 13633.

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    Date of creation: Nov 2007
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    Publication status: published as Does individual performance affect entrepreneurial mobility Empirical evidence from the financial analysis market Boris Groysberg (bgroysberg@hbs.edu), Ashish Nanda (ananda@law.harvard.edu) and M Julia Prats (jprats@iese.edu) Additional contact information Journal of Financial Transformation, 2009, vol. 25, pages 95-106
    Handle: RePEc:nbr:nberwo:13633

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