Essays in Entrepreneurship and Household Finance PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Essays in Entrepreneurship and Household Finance PDF full book. Access full book title Essays in Entrepreneurship and Household Finance by Yoosef Ghahreman. Download full books in PDF and EPUB format.
Author: Yoosef Ghahreman Publisher: ISBN: Category : Electronic dissertations Languages : en Pages : 140
Book Description
My dissertation is focused on the relationship between financial and business decisions of households. The first essay examines how founders of new businesses changed their portfolios in the aftermath of the 2007-2008 financial crisis. Using the Survey of Consumer Finances 2007-2009 panel data, I find evidence that those who became entrepreneurs (entrants) reduced financial portfolio risk compared to those who remained paid employees. I identify a movement away from stockholdings as a result of entry, and provide support for a response to the background risk arising from privately held businesses. Business ownership was also associated with changes in the real estate holdings of entrants. These findings highlight the link between private and public equity markets through entrepreneurs' portfolio choices and introduce a connection between housing and entrepreneurship through changes in home ownership. The second essay studies the trends in angel investment in a representative sample of the U.S. economy and explores the characteristics of these individual private investors. Our results suggest that angel investment is highly concentrated among the wealthiest households, and wealth plays an important role in participation, even among the top 1% of wealth distribution. These wealthy households, who own the majority of the economy's angel equity, increased their participation in the angel investing market during the 1998-2010 period, unaffected by the recessions and financial crisis. In the representative sample, self-employment plays an important role in predicting the incidence of being an angel investor and angel equity share, but the relationship is not as robust for the subsample of the top 1%. Self-reported willingness to take financial risk is generally associated with a higher likelihood of being an angel investor and a larger share of angel equity in different specifications, especially for the 1%. The angels are likely to be more financially disciplined as measured by their credit card balances and how much effort they put into choosing their investments. Angels' affluence, their higher financial discipline and more risk tolerance, together with the relatively low shares of angel equity in the portfolios of most angel investors might suggest calculated risk taking on the part of an average angel investor.
Author: Yoosef Ghahreman Publisher: ISBN: Category : Electronic dissertations Languages : en Pages : 140
Book Description
My dissertation is focused on the relationship between financial and business decisions of households. The first essay examines how founders of new businesses changed their portfolios in the aftermath of the 2007-2008 financial crisis. Using the Survey of Consumer Finances 2007-2009 panel data, I find evidence that those who became entrepreneurs (entrants) reduced financial portfolio risk compared to those who remained paid employees. I identify a movement away from stockholdings as a result of entry, and provide support for a response to the background risk arising from privately held businesses. Business ownership was also associated with changes in the real estate holdings of entrants. These findings highlight the link between private and public equity markets through entrepreneurs' portfolio choices and introduce a connection between housing and entrepreneurship through changes in home ownership. The second essay studies the trends in angel investment in a representative sample of the U.S. economy and explores the characteristics of these individual private investors. Our results suggest that angel investment is highly concentrated among the wealthiest households, and wealth plays an important role in participation, even among the top 1% of wealth distribution. These wealthy households, who own the majority of the economy's angel equity, increased their participation in the angel investing market during the 1998-2010 period, unaffected by the recessions and financial crisis. In the representative sample, self-employment plays an important role in predicting the incidence of being an angel investor and angel equity share, but the relationship is not as robust for the subsample of the top 1%. Self-reported willingness to take financial risk is generally associated with a higher likelihood of being an angel investor and a larger share of angel equity in different specifications, especially for the 1%. The angels are likely to be more financially disciplined as measured by their credit card balances and how much effort they put into choosing their investments. Angels' affluence, their higher financial discipline and more risk tolerance, together with the relatively low shares of angel equity in the portfolios of most angel investors might suggest calculated risk taking on the part of an average angel investor.
Author: Derek Potter Publisher: ISBN: Category : Languages : en Pages :
Book Description
Self-employment and the operation of private businesses form an important sector of the U.S. labor market, accounting for over 400,000 new organizations launched annually in recent years and nearly two-thirds of job creation according to the Small Business Administration. Yet, ownership of a business is fraught with financial risks, leading some economists to suggest that the average lifetime earnings of private business owners trail those of traditional employment. The three essays that follow explore (a) the motives that may drive people to pursue entrepreneurship despite the financial risk, (b) the asset allocation behavior of practicing entrepreneurs, and (c) the resulting satisfaction levels of those who transition into entrepreneurship. The first essay examines a population of users in the pre-launch phase of business development. Past research has suggested that given the lower expected financial returns from entrepreneurship that motivations to launch a business might be driven by preferences for high degrees of autonomy, overly optimistic assessments of financial outcomes, or higher risk preferences. Measures of each of these phenomena are included in a cohesive model guided by the Theory of Planned Behavior along with other relevant variables. Logistic regression predicting intent to launch a business in the future reveals that more general attitudes towards entrepreneurship increase the likelihood of interest in business ownership, while financial motivations are tied to decreased likelihood. The second essay examines the impact of business ownership during the operation of the business. Granted that business owners possess illiquid private organizations, Modern Portfolio Theory might predict that they reduce exposure to other risky asset classes (e.g., stocks). This essay examines stock ownership with consideration given to entrepreneurial status as well as the level of risk exposure stemming from owning a business. Logistic regression using data from the 2016 Survey of Consumer Finances reveals that business owners are less likely to participate in the stock market. An Ordinary Least Squares regression modeling the ratio of equity to total financial assets, however, reveals no significant differences in levels of equity ownership among business owners and the traditionally employed. Collectively, these findings may indicate that entrepreneurs face initial barriers to stock market investment that later fade if participation in the equity market does begin. Finally, the third essay utilizes longitudinal 2008-2014 Health and Retirement Study data to examine levels of job, financial, and life satisfaction. Variable selection is guided by the Job-Demand-Control model, and three random effects cumulative logits are produced. Findings suggest that transitions into entrepreneurship are associated with increased odds of job satisfaction but reduced odds of financial or life satisfaction. Results from these three studies imply that individuals might pursue entrepreneurship for non-financial reasons. However, engaging in the launch of a business could affect financial decision making and asset allocation behavior, as well as subsequent levels of satisfaction with personal finances and life. Implications for organizations and professionals who support prospective entrepreneurs are discussed.
Author: Olivia S. Kim (Scientist in business management) Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
Chapter 1 examines whether closing disparities in credit access between spouses can help reduce consumption inequality in the household. The 2013 reversal of the Truth-in-Lending Act increased the borrowing capacity of secondary earners in equitable-distribution states but not in community-property states, where division-of-property laws superseded the policy change. Using a matched difference-in-differences design and administrative financial-transaction records measuring the credit and consumption of each spouse, I show that this reversal closed the credit gap between spouses by increasing secondary earners' credit card limits. In turn, spouses shared consumption more equally, reducing their pre-reversal consumption gap. Delinquency rates were not measurably impacted, suggesting that household financial standing did not worsen. These results are consistent with a model of joint decision-making under limited commitment, in which credit causes a shift in marital bargaining power. Chapter 2 explores the investment decisions of small business owners when their child goes to college using the linked financial accounts of small businesses and their owners. By comparing small business owner households with college-entering aged children to otherwise similar households with near college-entering aged children, I show that small business owners respond to the increase in education spending by downsizing business production and liquidating the business. These results suggest that business owners' family financial decisions affect the real economy as business owners struggle to separate business capital demands from personal finances. Joint work with Natalie Cox and Constantine Yannelis in Chapter 3 uses notches in the loan guarantee rate schedule for Small Business Administration loans to estimate the elasticity of bank lending volume to loan guarantees. We show significant bunching in the loan distribution on the side of the size threshold that carries a more generous loan guarantee. The excess mass implies that increasing guarantee generosity by one percentage point of loan principal would increase per-loan lending volume by $19,000. Placebo results indicate that bunching disappears when the guarantee notch is eliminated. We conclude that lending is highly sensitive to loan guarantees, and thus, federal guarantee programs have the potential to increase lending levels when borrowing is inefficiently low.
Author: Mary Bonk Publisher: Gale Cengage ISBN: 9781414411248 Category : Business & Economics Languages : en Pages : 0
Book Description
This volume explains how people are personally involved in the economy, either as consumers or business owners presenting essays on "Personal Money Management: Buying, Borrowing, Saving, and Insuring" and on "Entrepreneurship: The World of Business."
Author: Anne Laurence Publisher: Routledge ISBN: 1134111347 Category : Biography & Autobiography Languages : en Pages : 337
Book Description
This book, the first of its kind, will be of interest across several disciplines including economics, economic history, business history, British history and women/gender history The fact that the essays reach beyond Britain and include work on Germany, Australia, Italy, Canada, Sweden and the West Indies will stimulate interest throughout (and even beyond) the English speaking world There is a growing interest in the study of women’s economic activity, which reflects the recognition that economics and economic/business history are not gender neutral subjects
Author: Carmen Aída Taveras Publisher: ISBN: Category : Languages : en Pages : 106
Book Description
It is often argued that borrowing constraints are crucial to the understanding of entrepreneurial activity in the United States. However, portfolio data and calibration exercises raise doubts about the importance of borrowing constraints. This thesis provides three chapters on the subject of entrepreneurship, two study the role of borrowing constraints and another shows that introducing uncertainty about ability in an occupational choice model without financial frictions can generate many patterns that resemble capital market imperfections. In the first chapter, I model agents who are imperfectly informed about their entrepreneurial ability and whose income provides a signal about their ability. In each period, they observe their income and choose their occupation (worker or entrepreneur) for the next period on the basis of their belief about their ability. I find that such a model produces patterns of wealth, savings, entry into entrepreneurship, and correlations between cash flow and investment that are consistent with the data. While previous work has used these patterns to argue that entrepreneurs face binding borrowing constraints, this paper shows that the same patterns may emerge simply because entrepreneurs are uncertain about their ability and learn slowly about it. In the second chapter, I use cross-sectional and panel data from the Survey of Consumer Finances across occupations and occupational transition groups. I argue that the evidence on mortgage rates and holdings of stocks and bonds of entrepreneurs are at odds with theories that propose borrowing constraints as the key ingredient in understanding occupational choice and entrepreneurial activity in the United States. Finally, the last chapter uses a standard general equilibrium model of occupational choice to study the role of financial constraints, finding that borrowing constraints are tighter in the model than in the data. Next, I recalibrate the model to match measures of firm size and slack in the financial constraint given by the real estate equity available for borrowing on the entrepreneur's primary home. Finally, two policy experiments are analyzed for both calibrations, highlighting the equilibrium effects of the differing degrees of tightness in the borrowing constraints.
Author: Yoosef Ghahreman
Author: Yoosef Ghahreman
Author: Derek Potter
Author: Olivia S. Kim (Scientist in business management)
Author: Steffen Meyer
Author: Tobin Hanspal
Author: Mary Bonk
Author: Anne Laurence
Author: Carmen Aída Taveras
Author: Merwin Howe Waterman
Author: Vicke A. Norén