Institutional Environment Quality and The Longevity of Billionaire Entrepreneurs

Abstract

Using self-made billionaire entrepreneurs in China as a proxy for large entrepreneurs, we examine the impact of institutional environment quality on the longevity of such entrepreneurs. We find no evidence that property rights institutions and contracting institutions, which are found to be important in explaining macroeconomic growth and small firm growth, matter to the longevity of billionaire entrepreneurs. However, we find that access to finance matters to the longevity of billionaire entrepreneurs. Our results help better understand the relative importance of various institutional environment forces to the continuous success of billionaire entrepreneurs.

Keywords: Billionaire entrepreneurs; longevity; property rights institutions; contracting institutions; access to finance

JEL Classification: M13, P26, O16