This paper develops a theory in which shocks to the effi ciency of information acquisition by financial intermediation translate into business cycle fluctuations via capital reallocation. In our theory, under costly verification, the bank chooses to only monitor the returns of those entrepreneurs with insuffi cient net worth. This distorts the existing capital allocation among entrepreneurs of ...

This study empirically evaluates the certification and value-added roles of reputable venture capitalists (VCs). Using a novel sample of entrepreneurial start-ups with multiple financing offers, I analyze financing offers made by competing VCs at the first professional round of start-up funding, holding characteristics of the start-up fixed. Offers made by VCs with a high reputation are three t...

Growth has been described as the essence of entrepreneurship. Organizational ecologists theorize an inevitable progression from growth through maturity, revival, and eventually decline. During the organizational life cycle entrepreneurs choose between growth, stability, or retrenchment strategies to overcome deteriorating trends in performance. Using survey data, this study tests a contingency ...

Acknowledgements We gratefully acknowledge the financial support provided by the Robins School of Business, University of Richmond toward this research, as well as the constructive comments generously offered by Associate Editor Justin Jansen and three anonymous reviewers. Abstract We propose a conceptual model that links entrepreneurs' passion, network centrality, and financial performance, an...

abstract: the significance of financial performance of companies makes factors affecting it significant. as a mixed-method research, this paper aimed at investigating the effect of human resources composition in of an organization and the management stability on the financial performance of the organization. first, based on the grounded theory, the indices of human resources composition were id...

Why doesn’t capital flow into fast-growing countries? This paper provides a model incorporating heterogeneous producers and underdeveloped domestic financial markets to study the joint dynamics of total factor productivity (TFP) and capital flows. When a large-scale reform eliminates idiosyncratic distortions and liberalizes capital flows, the TFP of our model economy rises gradually and capita...

INTRODUCTION The widespread adoption of information and communication technology (ICT) has been involving both large companies and smaller ones. However, while large enterprises usually own the managerial competence and financial resources to face innovation, a lot of research has been highlighting the typical weakness related to small and medium enterprises1 (SMEs) (Burns, 1996; Raymond, 1985,...

In recent years, the increase in competitiveness, as a result of the economic globalization and crisis, has caused the bankruptcy of many Italian small family businesses working in traditional industries. Meanwhile, family firms that have been working in a perspective of process and product innovation have been able to maintain a durable competitive advantage. In particular, enterprises that ha...