Financing constraints, home equity and selection into entrepreneurship

• 成果类型: Article
• 署名作者: Jensen, Thais Laerkholm; Leth-Petersen, Soren; Nanda, Ramana
• 署名单位: University of Copenhagen; Imperial College London
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.10.012
• 发表日期: 2022
• 页码: 318-337
• 关键词: financing constraints; entrepreneurship; Home equity; mortgage

摘要

We exploit a mortgage reform that differentially unlocked home equity across the Danish population and study how this impacted selection into entrepreneurship. We find that increased entry was concentrated among entrepreneurs whose firms were founded in industries where they had no prior work experience. Nevertheless, we find that marginal entrants benefiting from the reform had higher pre-entry earnings and a significant share of these entrants started longer-lasting firms. Our results are most consistent with a view that housing collateral enabled higher ability individuals with less-well-established track records to overcome credit rationing and start new firms, rather than only leading to 'frivolous entry' by those without prior industry experience. (C) 2021 Elsevier B.V. All rights reserved.