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What is Risk Tolerance about?

This document summarizes a research paper that examines the relationship between risk tolerance and entrepreneurship. It finds that individuals who are more risk tolerant, as measured by stock market participation and personal leverage, are more likely to start new firms. However, firms started by more risk tolerant entrepreneurs tend to have lower sales, lower return on assets, and worse performance. The paper uses longitudinal investment and firm data from Norway covering 400,000 individuals and 6,300 new

Author

Andriono E. Yuniarto

Language

EN