The effect of physical collateral and personal guarantees on business startups

IF 3.3 Q1 BUSINESS, FINANCE
Yuji Honjo , Arito Ono , Daisuke Tsuruta
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引用次数: 0

Abstract

Using microdata for Japan for 2007 and 2012, we examine whether and how financial constraints discourage individuals from starting a business. As proxies for financial constraints, we use prefectural variations in the share of firms relying on physical collateral and personal guarantees. We find that individuals are less likely to become nascent entrepreneurs if they live in a prefecture with a higher share of firms relying on personal guarantees. The negative effect of personal guarantees on becoming a nascent entrepreneur is insignificant when using a subsample for 2012, suggesting that administrative and legislative changes since the 2000s have made personal guarantees less costly for potential entrepreneurs over time. In contrast, we do not find a negative link between physical collateral and business startups. Our findings suggest that the low level of entrepreneurship in Japan is not due to financial constraints. If anything, it is due to a lack of risk-taking by potential entrepreneurs rather than a lack of collateralizable assets.

实物抵押和个人担保对初创企业的影响
利用日本 2007 年和 2012 年的微观数据,我们研究了财务限制是否以及如何阻碍个人创业。我们使用依赖实物抵押和个人担保的企业所占比例的都道府县差异作为财务限制的代理变量。我们发现,如果个人生活在依赖个人担保的企业比例较高的都道府县,那么他们成为新生企业家的可能性就较低。在使用 2012 年的子样本时,个人担保对成为新生代企业家的负面影响并不显著,这表明自 2000 年代以来的行政和立法变化使得个人担保对潜在企业家的成本逐渐降低。相比之下,我们没有发现实物抵押与初创企业之间存在负相关。我们的研究结果表明,日本的低水平创业并非由于资金限制。如果说有什么原因的话,那就是潜在创业者缺乏承担风险的能力,而不是缺乏可抵押的资产。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
6.20
自引率
2.60%
发文量
31
期刊介绍: Journal of Economics and Business: Studies in Corporate and Financial Behavior. The Journal publishes high quality research papers in all fields of finance and in closely related fields of economics. The Journal is interested in both theoretical and applied research with an emphasis on topics in corporate finance, financial markets and institutions, and investments. Research in real estate, insurance, monetary theory and policy, and industrial organization is also welcomed. Papers that deal with the relation between the financial structure of firms and the industrial structure of the product market are especially encouraged.
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