Entry Strategies of Partnerships versus Conventional Firms.

From 1997 to 2001 the number of nonemployer businesses, mostly partnerships, grew faster than conventional firms in the United States, a country with the mildest asymmetries between the two types of enterprises with respect to taxation, administrative entry barriers, and other institutional aspects....

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Published in:Southern Economic Journal Vol. 75; no. 1; pp. 159 - 173
Main Authors: Moretto, Michele, Rossini, Gianpaolo
Format: Article
Published: Wiley-Blackwell Jul2008
Subjects:
Online Access:View this record in EBSCOhost
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        10.1002/j.2325-8012.2008.tb00896.x
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        atl: Entry Strategies of Partnerships versus Conventional Firms.
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        au:
          Moretto, Michele
          Rossini, Gianpaolo
        affil:
          Dipartimento di Scienze Economiche, University of Padova, via del Santo, 33, Padova, Italy
          Dipartimento di Scienze Economiche, University of Bologna, Strada Maggiore, 45, Bologna, Italy
      su:
        United States
        Taxation
        Market entry
        Business partnerships
        American business enterprises
        Barriers to entry (Industrial organization)
        Market volatility
        Corporate growth
      sug:
        subj:
          Taxation
          Market entry
          United States
          Public Finance Activities
          Business partnerships
          American business enterprises
          Barriers to entry (Industrial organization)
          Market volatility
          Corporate growth
      ab: From 1997 to 2001 the number of nonemployer businesses, mostly partnerships, grew faster than conventional firms in the United States, a country with the mildest asymmetries between the two types of enterprises with respect to taxation, administrative entry barriers, and other institutional aspects. Partnerships are smaller than conventional firms, and their different speeds of net entry could be the result of internal organization that makes them swifter and better equipped to be fast-growing industries. In a continuous-time stochastic environment with sunk costs, we model entry as a growth option. Partnerships and conventional firms display specific patterns in terms of output price and size in that they appear to react in diverse fashions to market uncertainty. In most cases, the partnership is less risky and better suited to enter under conditions of high volatility, as between 1997 and 2001 in the United States.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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