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Personal Bankruptcy Law and Entrepreneurship

Author

Listed:
  • Geraldo Cerqueiro
  • María Fabiana Penas
  • Robert Seamans

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.

Suggested Citation

  • Geraldo Cerqueiro & María Fabiana Penas & Robert Seamans, 2017. "Personal Bankruptcy Law and Entrepreneurship," Working Papers 17-42, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:17-42
    as

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    File URL: https://www2.census.gov/ces/wp/2017/CES-WP-17-42R.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Debtor Protection; Personal Bankruptcy; Entrepreneurship;
    All these keywords.

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