__smbhome.uscs.susx.ac.uk_tjk30_Documents___smbhome.uscs.susx.ac.uk_qlfd7_Desktop_The Liability of volatility and how it changes over time among new ventur.pdf (773.48 kB)
The liability of volatility and how it changes over time among new ventures
journal contribution
posted on 2023-06-09, 19:40 authored by Erik Lundmark, Alex Coad, Julian S Frankish, David StoreyThis 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.
History
Publication status
- Published
File Version
- Accepted version
Journal
Entrepreneurship Theory and PracticeISSN
1042-2587Publisher
SAGE PublicationsExternal DOI
Issue
5Volume
44Page range
933-963Department affiliated with
- Strategy and Marketing Publications
Full text available
- Yes
Peer reviewed?
- Yes
Legacy Posted Date
2020-01-09First Open Access (FOA) Date
2020-01-09First Compliant Deposit (FCD) Date
2020-01-09Usage metrics
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