This paper expands the set of non-financial indictors of internet stock value to include that attributable to the retention of the founding entrepreneur. The failure of traditional financial value metrics to adequately explain the Internet stock boom has already provoked much research on non-financial indicators of firms value. The current paper adds to this trend of seeking “intangible” source...

An entrepreneur, attempting to establish a new business, selling what he believes will be a groundbreaking new product, meets with a group of prospective investors. During a discussion about his strategy and business plan, the exchange turns to measurement. An investor asks him how he will measure his success, and the entrepreneur responds with, "Well, simple. I will know I have a successful bu...

Entrepreneurial failure and exit are critical components of the venturing process of social entrepreneurs. Failing and abandoning the pursuit of opportunities that seek to create social good has consequences for a wide array of stakeholders, whose well-being depends on the value that the social entrepreneur provides. Given the nature of social entrepreneurship, this type of entrepreneur may pre...

We present a model in which an entrepreneur who needs to raise funds in order to finance a project chooses what level of disclosure his firm will abide to. The disclosure level is assumed to make a proportion of the cash flows verifiable and hence functions as a mechanism for the entrepreneur to credibly commit not to expropriate investors. The model predicts that less than complete disclosure ...

This empirical study which is based in Malta seeks to characterize the personality/psychological profile of Maltese entrepreneurs (business owners and self-employed persons) and employed managers. The characteristics investigated in this study are the need for achievement, locus of control, tolerance towards ambiguity, self-confidence, creativity/innovativeness, risk-taking propensity and self-...

This study examines and analyses the productization processes which are used by entrepreneur software companies in Turkey that aims to turn innovative ideas to competitive software products. It is very common that most such companies fail to reach their targets and we seek the find the problems in the productization processes that play major role in those failures. This study was conducted via ...

We model the IPO decision of an entrepreneur in an exchange economy. The entrepreneur holds a Lucas Tree, and when the IPO occurs, the market converges to a Two Trees economy built on Cochrane, Longstaff, and Santa-Clara (2008). We solve the optimal timing problem and study the diversification effects over the firm’s value and entrepreneur’s consumption. The model predicts that IPOs should be c...

We study how the trade-off between being an entrepreneur and investing in the financial markets is affected by cognitive ability and social skills. We test these hypotheses using a unique dataset that has available information on individual characteristics and choices for a representative sample of the Swedish population over 1966-2006. We show that social skills – i.e., willingness to assume r...

Existing finance literature is inadequate with respect to its coverage of the capital structure of small and medium sized enterprises (SMEs). This lack of coverage means that SMEs are provided with little or no guidance for optimising their cost of capital. This paper is an attempt to provide such guidance. For unlisted SMEs the cost of equity cannot be derived from the capital market, nor can ...