• xmlui.mirage2.page-structure.header.title
    • français
    • English
  • Help
  • Login
  • Language 
    • Français
    • English
View Item 
  •   BIRD Home
  • DRM (UMR CNRS 7088)
  • DRM : Publications
  • View Item
  •   BIRD Home
  • DRM (UMR CNRS 7088)
  • DRM : Publications
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

Browse

BIRDResearch centres & CollectionsBy Issue DateAuthorsTitlesTypeThis CollectionBy Issue DateAuthorsTitlesType

My Account

LoginRegister

Statistics

Most Popular ItemsStatistics by CountryMost Popular Authors
Thumbnail - Request a copy

On the stigma of failure for behavioral entrepreneurs

Genc, Caroline (2019), On the stigma of failure for behavioral entrepreneurs, 11ème Congrés Académie de l'Entreprenariat et de l'Innovation, 2019-06, Montpellier, France

Type
Communication / Conférence
Date
2019
Conference title
11ème Congrés Académie de l'Entreprenariat et de l'Innovation
Conference date
2019-06
Conference city
Montpellier
Conference country
France
Metadata
Show full item record
Author(s)
Genc, Caroline
Dauphine Recherches en Management [DRM]
Abstract (EN)
In this paper, I investigate the interplay between entrepreneurial biases such as optimism/overconfidence and the stigmatization of failure. I first establish the optimality of debt contracts even with biased entrepreneurs and then show that when contracting with overconfident entrepreneurs, investors provide them more funds compared to rational entrepreneurs. Indeed, when entrepreneurs are overconfident, agency rents are reduced, and they suffer less from credit rationing. Even after a failure, entrepreneurs who remain overconfident benefit from an easier access to financing. However, this should not be confounded with the stigmatization of failure which exists regardless of the level of confidence, as long as investors are pessimistic. “Success is not final, failure is not fatal: it is the courage to continue that counts.” W. Churchill
Subjects / Keywords
behavioral entrepreneurship; confidence; financing
JEL
L26 - Entrepreneurship
G32 - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
G33 - Bankruptcy; Liquidation

Related items

Showing items related by title and author.

  • Thumbnail
    On the stigma of failure for behavioral entrepreneurs 
    Genc, Caroline (2021) Communication / Conférence
  • Thumbnail
    A Behavioral Explanation to the Use of Staged Financing 
    Genc, Caroline (2019) Communication / Conférence
  • Thumbnail
    A behavioral explanation of staged financing 
    Genc, Caroline (2019) Communication / Conférence
  • Thumbnail
    A behavioral Explanation of Staged Financing 
    Genc, Caroline (2019) Communication / Conférence
  • Thumbnail
    Giving voice to customers : the impact of behavioral commitment 
    Caffier de Kerviler, Gwarlann; Bourjot-Deparis, Julien; Cloonan, Caroline (2012) Communication / Conférence
Dauphine PSL Bibliothèque logo
Place du Maréchal de Lattre de Tassigny 75775 Paris Cedex 16
Phone: 01 44 05 40 94
Contact
Dauphine PSL logoEQUIS logoCreative Commons logo