| 来源类型 | Working Paper |
| 规范类型 | 报告 |
| DOI | 10.3386/w14219 |
| 来源ID | Working Paper 14219 |
| The Burden of the Nondiversifiable Risk of Entrepreneurship | |
| Robert E. Hall; Susan E. Woodward | |
| 发表日期 | 2008-08-14 |
| 出版年 | 2008 |
| 语种 | 英语 |
| 摘要 | In the standard venture capital contract, entrepreneurs have a large fraction of equity ownership in the companies they found and are paid a sub-market salary by the investors who provide the money to develop the idea. The big rewards come only to those whose companies go public or are acquired on favorable terms, forcing entrepreneurs to bear a substantial burden of idiosyncratic risk. We study this burden in the case of high-tech companies funded by venture capital. Over the past 20 years, the typical venture-backed entrepreneur earned an average of $4.4 million from companies that succeeded in attracting venture funding. Entrepreneurs with a coefficient of relative risk aversion of two and with less than $0.7 million would be better off in a salaried position than in a startup, despite the prospect of an average personal payoff of $4.4 million and the possibility of payoffs over $1 billion. We conclude that startups attract entrepreneurs with lower risk aversion, higher initial assets, preferences for entrepreneurship over employment, and optimistic beliefs about the payoffs from their products. |
| 主题 | Financial Economics ; Portfolio Selection and Asset Pricing ; Financial Institutions ; Corporate Finance ; Public Economics ; Industrial Organization ; Market Structure and Firm Performance |
| URL | https://www.nber.org/papers/w14219 |
| 来源智库 | National Bureau of Economic Research (United States) |
| 引用统计 | |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/571893 |
| 推荐引用方式 GB/T 7714 | Robert E. Hall,Susan E. Woodward. The Burden of the Nondiversifiable Risk of Entrepreneurship. 2008. |
| 条目包含的文件 | ||||||
| 文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
| w14219.pdf（634KB） | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 | ||
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