University of Sussex
Browse
__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

Download (773.48 kB)
journal contribution
posted on 2023-06-09, 19:40 authored by Erik Lundmark, Alex Coad, Julian S Frankish, David Storey
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.

History

Publication status

  • Published

File Version

  • Accepted version

Journal

Entrepreneurship Theory and Practice

ISSN

1042-2587

Publisher

SAGE Publications

Issue

5

Volume

44

Page range

933-963

Department affiliated with

  • Strategy and Marketing Publications

Full text available

  • Yes

Peer reviewed?

  • Yes

Legacy Posted Date

2020-01-09

First Open Access (FOA) Date

2020-01-09

First Compliant Deposit (FCD) Date

2020-01-09

Usage metrics

    University of Sussex (Publications)

    Categories

    No categories selected

    Exports

    RefWorks
    BibTeX
    Ref. manager
    Endnote
    DataCite
    NLM
    DC