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An Empirical Study on the Determinants of Re-startup Firm's Performance by the Condition of Credit Problems  

Kim, In Sue (KAIST Center for Science-based Entrepreneurship)
Lee, Taek Ku (Planning & Coordination Office, Daejeon Metropolitan City)
Publication Information
Asia-Pacific Journal of Business Venturing and Entrepreneurship / v.13, no.2, 2018 , pp. 15-26 More about this Journal
Abstract
This study examines the effects of failure experience, re-startup's motivation, government support business and education for re-startup on the performance of re-startup firms after failure. In addition, we analyzed how the above factors affect the performance of re-startup firms by the condition of debt and credit problems. As a result of the analysis, the failure experience had no significant effect on the re-startup performance regardless of the credit problem, while re-startup's motivation, government support business and education for re-startup had a significant effect on re-startup firms' performance. In the re-startup group with the credit problem, the re-startup's motivation and the failure experience had a significant influence on the re-startup firms' performance. On the other hand, in the group that did not solve the credit problem, the re-startup's motivation and the failure experience had no significant effect on the re-startup performance, but the government support business and education for re-startup had a significant effect on re-startup performance. The results of this study are as follows: First, it shows that the characteristics of re-startups and the determinants of re-startups are different according to credit problems. Second, this study shows that it takes 56 months on average from the close of business to the re-start, and it may take more than 7 years due to the credit problems and bankruptcy. This suggests the necessity to consider re-startup in the concept of obsolete in consideration of time, when studying the direct/indirect influence of failure experience and re-startup, and establishing policy.
Keywords
start-up; failure experience; re-start-up; corporate performance; entrepreneurship; credit problems; regression analysis;
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Times Cited By KSCI : 1  (Citation Analysis)
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