Do Stringent Bankruptcy Laws Always Deter Entrepreneurial Activity? A Study of Cultural Influences

Entrepreneurship Theory and Practice, Forthcoming

36 Pages Posted: 29 Jun 2020

See all articles by Naga Lakshmi Damaraju

Naga Lakshmi Damaraju

Sonoma State University

Jay B. Barney

University of Utah - David Eccles School of Business

Gregory G. Dess

University of Texas at Dallas - Naveen Jindal School of Management

Date Written: February 15, 2020

Abstract

Stringent bankruptcy laws are generally understood to increase the costs of failure and thus not conducive for entrepreneurship. In this paper, theory is developed and tested exploring the moderating influences of the dimensions of culture — individualism — collectivism, masculinity– femininity, uncertainty avoidance, and power distance. Results of this study, from conditional fixed effects Poisson regressions, support that stringent bankruptcy laws are positively associated with the levels of entrepreneurial activity in certain cultural contexts.

Keywords: Entrepreneurship, entrepreneurial activity, bankruptcy laws, culture, cultural dimensions

JEL Classification: M

Suggested Citation

Damaraju, Naga Lakshmi and Barney, Jay B. and Dess, Gregory G., Do Stringent Bankruptcy Laws Always Deter Entrepreneurial Activity? A Study of Cultural Influences (February 15, 2020). Entrepreneurship Theory and Practice, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3619521

Naga Lakshmi Damaraju (Contact Author)

Sonoma State University ( email )

1801 East Cotati Avenue
Rohnert Park, CA 94928
United States

Jay B. Barney

University of Utah - David Eccles School of Business ( email )

1645 E Campus Center Dr
Salt Lake City, UT 84112-9303
United States

Gregory G. Dess

University of Texas at Dallas - Naveen Jindal School of Management ( email )

P.O. Box 830688
Richardson, TX 75083-0688
United States
(972) 883-4439 (Phone)

HOME PAGE: http://som.utdallas.edu/faculty/faculty_dess.htm

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