Séminaire Sumudu KANKANAMGE - Buying and selling entrepreneurial assets

Prochain séminaire du GAINS

Le 21 novembre 2023

Le prochain séminaire du GAINS a lieu 21 novembre 2023 de 10h45 à 12h15 dans la salle T204.

Sumudu KANKANAMGE (Le Mans Université) présentera un papier intitulé "Buying and selling entrepreneurial assets".

Abstract :

How are the options to buy and sell a business relevant for entrepreneurs? Prospective entrepreneurs value the purchase of mature firms while incumbents want to recover both the tangible and intangible value of their businesses upon exit. We introduce a theory of entrepreneurial assets transfer consistent with empirical evidence and centered around a businesses for sale market that lets entrepreneurs trade the maturity components of their firms. We find that shutting that market down leads to a substantial drop in aggregate output and alters the pool of firms, incentives to enter and exit, and the wealth distribution.