We find that optimal executive hiring decisions at the individual firm level can lead to reduced wealth for investors that hold a diversified portfolio of investments. We use a proven economic model to show costs are imposed on other firms in a portfolio when one firm hires externally. The model...

Acquiring talent is a central decision for new ventures. Yet recruiting decisions are made under demand uncertainty, making the optimal hiring strategy unclear. We argue that such strategy depends on the type of entrepreneurship pursued: whether entrepreneurship entails founding a standalone...