Determinants of Business Insolvencies During Economic Growth and Recession in Latvia
2013; Routledge; Volume: 45; Issue: 3 Linguagem: Inglês
10.1080/01629778.2013.848372
ISSN1751-7877
AutoresArnis Sauka, Friederike Welter,
Tópico(s)Corporate Finance and Governance
ResumoAbstractConsidering the importance of context in exploring the entrepreneurship phenomenon, this explorative paper addresses patterns of business insolvencies during economic growth as compared to the economic recession within the context of an advanced transition economy. Empirically, the paper draws on 15 face-to-face interviews with insolvency administrators in Latvia conducted in 2007, and a repeated survey of the same respondents conducted in 2009. Our findings suggest that apart from reasons influencing business insolvency in well-established market economies, such as company size and age, education, previous management experience and access to finance, specific environmental factors play an important role in determining companies' insolvency within a transition setting. These include, but are not limited to, illegal and unethical forms of behavior. Findings also reveal some important aspects of the nature of entrepreneurial behavior as influenced by the changes within the context.Keywords: business insolvencyLatviaeconomic growthrecession Additional informationNotes on contributorsArnis SaukaArnis Sauka is Vice Rector for Research, Director of the Centre for Entrepreneurship, Innovation and Regional Development at Ventspils University College, and Researcher at the Stockholm School of Economics in Riga (Latvia). His main research interests are related to productive entrepreneurship, business start-ups, and performance.Friederike WelterFriederike Welter is President of IfM Bonn and Professor at the University of Siegen (Germany). She also is affiliated to Jönköping International Business School (Sweden). Her main research interests are related to entrepreneurship and small business development, and entrepreneurial behavior in different regional contexts, women's entrepreneurship, and entrepreneurship policies.
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