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

39 Pages Posted: 29 Nov 2007 Last revised: 29 Oct 2014

See all articles by Boris Groysberg

Boris Groysberg

Harvard Business School

Ashish Nanda

Harvard Law School

M. Julia Prats

University of Navarra - IESE Business School

Date Written: November 2007

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.

Suggested Citation

Groysberg, Boris and Nanda, Ashish and Prats, M. Julia, Does Individual Performance Affect Entrepreneurial Mobility? Empirical Evidence from the Financial Analysis Market (November 2007). NBER Working Paper No. w13633, Available at SSRN: https://ssrn.com/abstract=1033759

Boris Groysberg (Contact Author)

Harvard Business School ( email )

Soldiers Field
Boston, MA 02163
United States
617-496-2784 (Phone)
617-496-5271 (Fax)

Ashish Nanda

Harvard Law School ( email )

1575 Massachusetts
Hauser 406
Cambridge, MA 02138
United States

M. Julia Prats

University of Navarra - IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034
Spain

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