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Library/Entrepreneurial entry: takeover versus founding

A17FT50

Caveat emptor as an obstacle to business transfers: Effect of product line liability exceptions on acquisitions, entry, and exit

Balasubramanian, N., Sivadasan, J., & Xu, W. (2024)

Strategic Management Journal, 45(7), 1300-1325

Tests whether making acquisitions less attractive to buyers changes entry and exit. Uses comprehensive US establishment data (US Census Bureau, per the data availability statement) and staggered judicial adoption of successor product-line liability. After adoption, acquisitions of manufacturing establishments fall, closures rise and relative entry falls, more so for smaller entrants. This is the clearest recent FT50 paper treating the market for existing businesses as part of the entrepreneurial entry decision, with US micro data.

Sourcedoi:10.1002/smj.35843 citations (OpenAlex)

Full citation

Balasubramanian, N., Sivadasan, J., & Xu, W. (2024). Caveat emptor as an obstacle to business transfers: Effect of product line liability exceptions on acquisitions, entry, and exit. Strategic Management Journal, 45(7), 1300-1325.

https://doi.org/10.1002/smj.3584

This page describes a work published elsewhere. The summary, where present, states what the authors claim; it is not the school's position. Read the source before quoting a figure.