@article{23048a352e024fc383cc972a67e0a9a7,
title = "Teams and bankruptcy",
abstract = "We study how the human capital embedded in teams is affected by, and reallocated through, corporate bankruptcies. After a bankruptcy, U.S. inventors produce fewer and less impactful patents. Moreover, teams become less stable. Consequently, compared to inventors that rely less on teamwork, the performance of team inventors deteriorates more. These findings point to the loss of team-specific human capital as a cost of resource reallocation through bankruptcy. Acquisitions by industrial firms and joint mobility of inventors with past collaborations limit these losses, suggesting that the labor market and the market for corporate control help preserve team-specific human capital in bankruptcies.",
author = "Baghai, {Ramin P.} and Silva, {Rui C.} and Luofu Ye",
note = "Funding Information: We thank Holger Mueller (the editor), two anonymous referees, Effi Benmelech, Andrea Caggese, Emanuele Colonnelli, Julian Franks, Laurent Fr\u00E9sard, Paolo Fulghieri, Janet Gao, Marco Ghitti, Sasha Indarte, Ben Iverson, Hyunseob Kim, Kaveh Majlesi, Vojislav Maksimovic, David Matsa, Paige Ouimet, Luigi Pistaferri, Ronan Powell, Chenyu Shan, Jason Sturgess, Joacim T\u00E5g, Vikrant Vig, Woody Wu, and Zili Zhuang; seminar participants at Cass Business School, Copenhagen Business School, London Business School, Nova SBE, University of Lugano (SFI), and University of Milano-Bicocca; and conference participants at the Labor and Finance Working Group meeting at the University of Colorado Boulder (2016), SITE Labor and Finance Workshop (2017), Oslo Summer Finance Workshop (2017), EFA Annual Meeting (2017), 6th International Moscow Finance and Economics Conference (2017), AFA Annual Meeting (2018), Review of Corporate Finance Studies Conference (2018), LBS IIE Research Symposium (2018), Lancaster University Corporate Finance Workshop (2018), NICE conference (2018), 3rd Annual CEPR Symposium (2018), Corporate Finance: Beyond Public Companies conference (2018), The Society of Labor Economists Annual Meeting (2018), 4 Nations Cup (2018), FIRS (2018), PFN (2018), Antwerp Corporate Finance Day (2018), CEPR European Summer Symposium in Financial Markets, World Finance Conference, EEA Annual Meeting (2018), Duke/UNC Entrepreneurship Research Conference (2019), City University of Hong Kong International Finance Conference on Corporate Finance and Financial Markets (2019), and the China International Conference in Finance (2019) for helpful comments and discussions. Baghai gratefully acknowledges financial support from the Swedish House of Finance at the Stockholm School of Economics. Silva gratefully acknowledges financial support from the Deloitte Institute for Innovation and Entrepreneurship at the London Business School. Ye thanks the DFG Center for Advanced Studies on the Foundations of Law and Finance for their support [project FOR 2774]. Publisher Copyright: {\textcopyright} The Author(s) 2024.",
year = "2024",
month = sep,
day = "1",
doi = "10.1093/rfs/hhae017",
language = "English",
volume = "37",
pages = "2855--2902",
journal = "Review Of Financial Studies",
issn = "0893-9454",
publisher = "Oxford University Press",
number = "9",
}