NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

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

Boris Groysberg, Ashish Nanda, M. Julia Prats

NBER Working Paper No. 13633
Issued in November 2007
NBER Program(s):   LS   PR

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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Document Object Identifier (DOI): 10.3386/w13633

Published: 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

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