Skip to main content
alt

Please enter a keyword and click the arrow to search the site

Or explore one of the areas below

Teams and bankruptcy

Subject

Finance

Publishing details

CEPR Discussion Paper

Authors / Editors

Baghai R;Silva R;Ye L

Publication Year

2018

Abstract

We study the impact of corporate bankruptcies on teams and inventor productivity in the United States. We show that bankruptcy reduces team stability. After a bankruptcy, team inventors produce fewer and less impactful patents, and they are more likely to cease patenting. This points to the loss of team-specific human capital as a cost of resource reallocation through bankruptcy. Our findings also suggest that the labor market values teams and their stability. Past collaboration increases the probability of inventors jointly moving to a new firm after bankruptcy, and the productivity of inventors that relocate together with their team increases.

Keywords

Bankruptcy; Creative destruction; Innovation; Labor productivity; Team-specific human capital; Teams; Teamwork

Series Number

DP13198

Series

CEPR Discussion Paper

Available on ECCH

No

View document


Select up to 4 programmes to compare

Select one more to compare
×
subscribe_image_desktop 5949B9BFE33243D782D1C7A17E3345D0

Sign up to receive our latest news and business thinking direct to your inbox

×

Sign up to receive our latest course information and business thinking

Leave your details above if you would like to receive emails containing the latest thought leadership, invitations to events and news about courses that could enhance your career. If you would prefer not to receive our emails, you can still access the case study by clicking the button below. You can opt-out of receiving our emails at any time by visiting: https://london.edu/my-profile-preferences or by unsubscribing through the link provided in our emails. View our Privacy Policy for more information on your rights.