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External finance is central for nascent entrepreneurs, people in the process of starting new ventures. We argue that nascent entrepreneurs use patents and prototypes in order to signal their ability to appropriate the returns from their innovation as well as the project´s feasibility. Our...
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agency theory, assigning managers stock options aligns their interests with the interests of the owners of the firm. This … managerial incentives with the owners' goals, as agency theory predicts, it also grants top managers residual control rights to … subsequent competitive advantage. This theory of entrepreneurial governance is tested using patent ownership as a proxy for both …
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