Lundmark, Erik, Coad, Alex, Frankish, Julian S and Storey, David J (2020) The liability of volatility and how it changes over time among new ventures. Entrepreneurship Theory and Practice, 44 (5). pp. 933-963. ISSN 1042-2587

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Abstract

This article theorizes how short-term revenue volatility affects new venture viability and how such volatility develops over time. Tracking the bank accounts of 6,578 new ventures over a 10-year period, we find that, even after controlling for a range of other factors, short-term revenue volatility is a strong predictor of venture exit. Although short-term revenue volatility is associated with the depletion of buffer resources and financial default, surviving ventures do not, on average, decrease their short-term revenue volatility over time. However, short-term revenue volatility decreases at the cohort level due to higher exit rates of volatile ventures.

Item Type:	Article
Schools and Departments:	University of Sussex Business School > Strategy and Marketing
Depositing User:	Joy Blake
Date Deposited:	09 Jan 2020 09:36
Last Modified:	13 Aug 2020 11:30
URI:	http://sro.sussex.ac.uk/id/eprint/88043

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